In a striking statement Wednesday, Jeff Bezos, the billionaire founder of Amazon, asserted that the bottom half of earners in the United States should not have to pay any federal income tax. This remark comes amid discussions in various states about implementing additional taxes for the wealthiest Americans. During an interview with CNBC, Bezos emphasized the disproportionate burden placed on lower-income workers, stating, “We shouldn’t be asking this nurse in Queens to send money to Washington.”
Bezos highlighted that the lowest-earning 50% of Americans contribute only 3% of all tax revenue. In 2023, the average income tax rate stood at 14.1%, with the top 1% of earners paying an average rate of 26.3%. Meanwhile, those in the bottom half, who earn approximately $24,500 annually, are paying an average tax rate of just 3.7%, according to IRS data analyzed by the Tax Foundation. Bezos argued that the negligible contribution from low-income earners makes taxing them seem unreasonable. “It really makes no sense,” he added.
He dismissed the notion of taxing a typical Amazon worker in New York, earning around $50,000 a year, calling it “absurd.” Emphasizing his belief in tax cuts for lower-income individuals, Bezos insisted that such measures would ultimately be beneficial. “You have a bunch of people in this country who are doing really well, but you have a bunch of people in this country who are struggling,” he said, advocating for a tax system that supports those who are facing hardships.
Recent research reveals that Amazon delivery drivers earn an average hourly wage of $19, significantly less than the $35 per hour earned by unionized UPS drivers. This equates to an annual income of about $39,520 for a full-time Amazon driver, which is not enough to alleviate financial concerns for many. A survey indicated that about 26% of Amazon drivers experience food insecurity, and 33% struggle to keep up with utility bills, illustrating the precarious financial position many workers find themselves in.
As of now, Bezos stands as the fourth-richest individual globally, with a net worth estimated at $267.3 billion, trailing only the co-founders of Google and Tesla’s Elon Musk. His recent comments come at a time when several states have proposed taxes targeting their wealthiest residents. Notably, a proposed “billionaires tax” in California has faced backlash from affluent individuals, with former residents arguing against new tax structures reminiscent of their home countries.
Among these discussions, federal lawmakers are also considering tax relief measures for lower earners. For instance, Senator Cory Booker has introduced the “Keep Your Pay Act,” which aims to exempt the first $75,000 of income from taxation. As the conversation about tax structures continues, Bezos’s comments add a prominent voice to the debate over how to fairly tax citizens based on their economic realities.
