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‘Zero It Out’: Bezos Calls for Eliminating Federal Income Taxes on Bottom Half of Earners

‘Zero It Out’: Bezos Calls for Eliminating Federal Income Taxes on Bottom Half of Earners

Jeff Bezos has proposed eliminating federal income taxes entirely for the bottom 50% of American earners, arguing that the most effective way to support people financially is to stop taking money from them in the first place.

The Amazon founder shared the idea on his X account, stating: “The best way to put money in someone’s pocket is to not take it out in the first place.” The suggestion quickly sparked debate among economic commentators.

Panelists divided on “stake in the game”

Jackie expressed opposition to the plan, emphasizing the importance of broad participation in the tax system. “You need to have a stake in something. You need to be invested in something,” she said. “If all of a sudden you’re just immune from the tax code because you fall in this lower bracket, you are not connected to everything that’s happening in the same way.” She added that everyone should contribute something to fund government services.

Brian noted Bezos’ key statistic: the bottom 50% of earners contribute only about 3% of total federal income tax revenue.

Jackie agreed the figure is roughly accurate, describing it as “very little in comparison to what others pay.” She pointed out the irony in calls for the rich to “pay their fair share,” noting that the top 50% pay 97% of federal income taxes.

Taylor supported elements of Bezos’ message but stressed government efficiency. He highlighted Bezos’ comment that Amazon engineers could identify 3% savings in a bloated budget on a Tuesday afternoon. “Why can’t the federal government find a place to cut our bad waste, fraud, and abuse?” Taylor asked. While agreeing that citizens should maintain “a stake in the game,” he argued the U.S. faces a spending problem rather than a revenue problem, suggesting deeper cuts of 3% or even 20% are possible.

Tax contribution data highlighted

Dagen referenced IRS data showing the bottom 50% of federal income tax filers pay a total of $63 billion annually — equivalent to roughly two-thirds of one month’s interest on the national debt — and just 3% of all income taxes collected. On average, individuals in this group pay $822 in federal income taxes per year.

In contrast, she noted the top 1% earn about 22% of total adjusted gross income but pay more than 40% of all federal income taxes. “If you don’t pay any federal income tax, you’re not paying one dime and not contributing one cent toward our military, toward our national defense,” Dagen said. “I just deep down have a problem with that.”

She warned that failing to address spending would lead to higher burdens on high earners and innovators. “They are just going to keep spending and keep borrowing and the innovators and entrepreneurs and the creators are going to be forced to carry that burden even more.”

Brian advocated for a flat tax system as a fairer alternative. “Nothing has ever seemed more fair to me than a flat tax,” he said. “You pay 10%, 12% and if you earn more you pay more and if you earn less, you pay less, but everybody participates in what it takes to run our government.” He expressed dislike for progressive taxation due to its exclusionary effects.

The discussion also touched on alternative revenue ideas, including tariffs, though panelists primarily focused on spending restraint and universal tax participation.