Jeff Bezos proposed eliminating federal income taxes for the bottom half of U.S. earners during a CNBC interview, arguing this would alleviate financial burdens and foster entrepreneurship among lower-income individuals.
Key Takeaways
Jeff Bezos proposed eliminating federal income taxes for the bottom half of U.S. earners during a CNBC interview, arguing it would alleviate financial burdens and foster entrepreneurship. His comments come as Democratic lawmakers push for new wealth taxes on millionaires and billionaires.
- Jeff Bezos proposes zero federal income tax for bottom 50% of earners
- Bottom half currently contributes about 3% of federal income taxes
- Proposal contrasts with Democratic wealth tax initiatives at state and federal levels
- Critics focus on Bezos' praise for Donald Trump during the same interview
The bottom 50% of taxpayers currently contribute about 3% of federal income taxes, which Bezos believes should drop to 'zero.' He emphasized the psychological impact of eliminating this tax burden entirely. 'I don't want to reduce it, I want to eliminate it,' he told CNBC's Andrew Ross Sorkin. 'I think there's something very powerful about zero.'
Bezos' comments come as Democratic lawmakers at both state and federal levels push for new wealth taxes targeting millionaires and billionaires. In California, proponents of a measure to tax billionaires have collected enough signatures for it to appear on the November ballot. The proposal would impose a one-time 5% tax on residents with net worths exceeding $1 billion.
At the federal level, Senator Elizabeth Warren introduced the Ultra-Millionaire Tax Act of 2026, which proposes an annual 2% tax on households and trusts worth more than $50 million, plus an additional 1% tax on billionaires' wealth. Senator Cory Booker has also proposed eliminating taxes on the first $75,000 for joint-filing households through his Keep Your Pay Act.
Bezos, who stepped down as Amazon's CEO in 2021 and remains its executive chairman, is worth approximately $269 billion according to Forbes. His tax proposals contrast with Republican efforts to pass a 'big, beautiful' tax and spending bill that critics say primarily benefits the wealthiest households.
During the same interview, Bezos drew criticism for his praise of President Donald Trump, stating he is 'a more mature, more disciplined version of himself than he was in his first term.' Bezos acknowledged Trump's ideas and accomplishments, saying 'You have to give him credit where credit is due.' This praise sparked backlash on social media.
Bezos also defended Amazon's $75 million investment in a documentary about Melania Trump, calling it 'a very wise business decision,' despite claiming he had no involvement. Amazon has reportedly contributed $1 million to Trump's inauguration committee and is listed as a contributor to the planned White House ballroom.
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