The CEO of Amazon, Jeff Bezos, some estimate that the fourth richest person in the world, has turned the tables in an effort to “tax the rich”. He advocates eliminating the federal income tax for low-income Americans.
In Wednesday’s interview with CNBC, Bezos reflected on his upbringing as the son of a Cuban immigrant and a young mother, who “raised himself” through tough times.
“I want to make sure that people who are struggling today have the opportunity to do that, too, to grow themselves, and maybe they’ll be the next Steve Jobs,” Bezos said. “Maybe one of their kids will be the next Steve Jobs. I don’t know, but we can give them a better chance by eliminating their tax liability.”
Although Bezos has also said that raising taxes on the wealthy will do little to help struggling families, efforts to impose higher taxes continue to gain momentum. New York City Mayor Zohran Mamdani has introduced a “pied-à-terre” tax on luxury second homes for wealthy property owners who don’t live in the city full-time. And a dozen or so states are considering so-called “wealth taxes” as well.
Read more: California’s billionaire tax gets closer to the November ballot: What you need to know
‘Queens nurse doesn’t have to pay taxes’
Bezos said that the top 1% of earners pay 40% of taxes, while the bottom half of earners only pay 3% of all tax revenue.
“A nurse in Queens who makes $75,000 a year pays more than $12,000 a year in taxes. Does that really make sense? How about we start with a nurse in Queens paying no taxes? That’s $1,000 a month that can help with rent or groceries or whatever. The bottom half of the income earners in this country only pay 3% tax, “We can only get 3% tax.” Bezos said.
Data from the Tax Foundation, a tax research institute, generally agrees with Bezos’ figures. According to the organization, in 2023, the top 1% of taxpayers paid 38.4% of all personal income taxes, while the bottom half of taxpayers, earning less than $53,801, paid 3.3% of the total.
“If people are just starting out and struggling, stop taxing them. We don’t need it. We live in the richest country in the world,” said Bezos.
However, approximately 76 million households did not pay federal income tax by 2025. According to the Tax Policy Center, 70% earned less than $75,000, and 45% earned less than $40,000. Many taxpayers use the standard deduction, as well as other exclusions and credits, such as the earned income tax credit and the child tax credit, to reduce their tax liability, the Tax Policy Center says.
Read the following: Ahead of next year’s taxes: 6 moves to make now
The ‘Keep Your Pay Act’
There have been congressional bills floating the idea of reducing or eliminating estate taxes for poor people, although none have been very advanced.
In March, Sen. Cory Booker (DN.J.) introduced the Save Your Pay Act, which would make the first $75,000 of income tax-free for families filing jointly.
“This plan can be fully paid for by taking taxes out of our tax system — so that the richest few and the big corporations that get rich by keeping prices high can finally start paying their fair share,” Booker said in a statement announcing the proposal.
The bill has been referred to the Senate Finance Committee, where it sits.
Half a million dollars in taxes over a lifetime
While low-income families may applaud the federal income tax exemption, their tax bills will not disappear. There are still state and local income taxes, payroll taxes, sales taxes, property taxes, capital gains taxes, and taxes, estate taxes, and gifts.
An estimate compiled by Paradigm Life Insurance listed 97 different taxes in the US tax code, including:
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Air Travel Taxes
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Biodiesel Fuel Taxes
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Building Permit Taxes
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Business Registration Fees
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Tobacco taxes
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Driver’s License Fees
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Fishing License Fees
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Fuel taxes
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Hotel Taxes
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Hunting License Fees
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Assessment Fees
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Inventory Taxes
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Library Fees
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Taxes on Alcohol
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Local School Taxes
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Professional Licenses and Fees
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Toll Booth Tax
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Self-Employment Taxes
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Vehicle Registration Taxes
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Workers’ Compensation Taxes
And that is not a complete list.
Self, a financial technology company, estimates that the average American will pay more than $520,000 in taxes over their lifetime – a third of all income. That includes income taxes, property taxes, and taxes on everything from everyday expenses to the cost of driving the most popular car (the Toyota RAV 4, which costs $38,889 with taxes alone, based on an average of four lifetime purchases).
“However, due to local markets, wages, and government actions, some states are seeing taxpayers pay even more than the national average,” the analysis said.
New Jersey residents pay the most in taxes over their lifetime ($987,117), while those living in West Virginia pay the least ($358,407), according to Self’s report.
