May 22, 2026
Amazon Founder Jeff Bezos Says Bottom 50% Should Not Pay Income Taxes
The billionaire entrepreneur says eliminating federal taxes on lower-income Americans could spark innovation and create more opportunities for future business leaders.
Amazon Founder and Executive Chairman Jeff Bezos is calling for a dramatic overhaul of the federal tax system, arguing that the bottom half of American workers should pay no federal income tax — at all.
Bezos, who ranks as the fourth-richest person in the world with an estimated net worth of $267.3 billion, said Americans with lower incomes would benefit more from a complete tax elimination rather than modest reductions during an interview on CNBC’s “Squawk Box.” He noted that the top 1% of taxpayers pay about 40% of all tax revenue, while the bottom 50% account for just 3%.
“I don’t think it should be 3%. I think it should be zero,” he argued. “I don’t want to reduce it, I want to eliminate it,” he continued. “I think there’s something very powerful about zero. Zero is a better number than $1.”
The Blue Origin founder argued that income tax paid by lower earners is “a small amount of money for the government,” using a New York City healthcare worker who earns $75,000 a year as an example.
“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. “Some people talk about making the tax system more progressive. How about we start by having the nurse in Queens not pay taxes?”
Bezos said removing the tax burden could help struggling Americans pursue entrepreneurship and wealth-building opportunities.
“The government can give people who are struggling today a better chance at entrepreneurial success by eliminating their tax bill,” he said, adding that some could become “the next Steve Jobs.”
Bezos, however, stopped short when asked if he supports raising taxes on billionaires like himself.
“You could double the taxes I pay, and it’s not gonna help that teacher in Queens. I promise you,” Bezos said in an interview on CNBC earlier Wednesday.
New York City Mayor Zohran Mamdani fired back on X, saying, “I know a few teachers in Queens who would beg to differ.”
I know a few teachers in Queens who would beg to differ. https://t.co/JEnRnM2xII
— Mayor Zohran Kwame Mamdani (@NYCMayor) May 20, 2026
According to the Tax Foundation, a nonpartisan tax think tank, Americans earning less than roughly $53,801 annually paid an average federal income tax rate of 3.7% in 2023 and accounted for about 3% of total federal income taxes. By comparison, the top 1% paid an average tax rate of 26.3% and contributed approximately 40% of all federal income taxes. However, a 2024 report by the Yale University Budget Lab found that high earners often use tax loopholes to reduce their IRS bills, and, therefore, end up paying a rate that is “far less” than what’s legally required. For example, some in the top 1% pay an effective tax rate of 3%, while others pay as much as 45%, according to the Budget Lab’s analysis, reports CNBC.
Bezos’ comments arrive amid growing national debates over wealth inequality and tax reform. Several Democratic lawmakers have proposed new taxes targeting wealthy Americans. Sen. Elizabeth Warren recently introduced the Ultra-Millionaire Tax Act of 2026, proposing annual taxes on households with net worth exceeding $50 million and additional taxes on billionaires. Meanwhile, Sen. Cory Booker has proposed the Keep Your Pay Act, which would eliminate taxes on the first $75,000 of income for households filing jointly, and provide proportional tax relief for single filers and heads of household.
Additionally, advocates in California placed a billionaire tax proposal on the November ballot, which would impose a one-time 5% tax on residents with net worths exceeding $1 billion. This has caused fears of a mass exodus of wealth from the state, with several billionaires moving to locales with friendlier tax statutes.
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