Bezos calls to end federal income tax for bottom 50%

Jeff Bezos on May 20 urged lawmakers to eliminate federal income tax for the bottom half of U.S. filers, arguing the policy would leave more money in lower- and middle-income households while affecting a small share of total tax receipts. He made the proposal during a filmed interview at his Blue Origin facility and reposted the clip online, where it drew millions of views.

Bezos cited recent tax data showing the bottom 50% of filers contribute about 3.3% of federal individual income tax receipts, while the top 1% account for about 40% of those collections. Using annual individual income tax receipts near $2.4 trillion, the 3.3% share equals about $80 billion a year.

To illustrate who would benefit, he pointed to a New York City nurse earning roughly $75,000 and paying more than $12,000 a year in federal income taxes. He said the roughly $1,000 a month in tax payments could cover essentials like rent or groceries and called the burden “absurd.” He added, “A nurse in Queens shouldn’t be sending money to Washington. Washington should be sending her an apology.”

Bezos framed the issue as one of federal spending priorities rather than tax revenue levels. He pointed to a figure he gave for New York City per-student spending of about $44,000 and contrasted it with data that place recent per-student spending closer to $39,304. He also said higher taxes on the wealthy alone would not close the federal deficit.

Practical questions remain about how to change the tax code and pay for any offsets. Eliminating federal income tax for half of filers would require new legislation and would need to be weighed against other budget choices. The Treasury projects a federal deficit near $2 trillion for fiscal 2026; in that context, an $80 billion reduction in individual income tax receipts would be a small share of total revenue but a sizable amount for affected households.

Bezos has previously advocated for spending restraint and opposed certain proposals to raise taxes on high-net-worth individuals. His latest remarks focus attention on tax relief for lower- and middle-income filers as a policy option.