Bernie Sanders promotes wealth tax as debate heats up
Bernie Sanders supports a wealth tax, but Congress remains unmoved. Meanwhile, polls show that many Americans support taxing billionaires.
If Jeff Bezos had his way, half of Americans would pay no federal income tax.
Amazon’s president pointed out in a May 20 television appearance that the top 1% of U.S. taxpayers pay about 40% of all federal income taxes. The bottom half of taxpayers pay only 3%.
“I don’t think it should be 3%,” Bezos said. “I think it should be zero.”
The world’s fourth richest man was speaking on CNBC’s “Squawk Box.”
Mr. Bezos talked about his upbringing. Her father was a Cuban immigrant, and her mother gave birth when she was 17 years old.
“And she came into her own,” he said. “So I looked at that and wanted to give those who are struggling today that opportunity as well. To better themselves.”
His comments come as some cities and states propose raising taxes on the wealthy.
California’s so-called billionaire tax, for example, would raise an estimated $100 billion by imposing a one-time 5% “wealth” tax on about 200 billionaires.
Some of the state’s most prominent billionaires say they’d rather move than pay.
Bezos: Tax cuts will help low-income Americans become ‘self-sufficient’
Bezos said the government should help low-income Americans become “self-sufficient” by reducing their income tax burden.
“By eliminating their tax bill, we can give them more opportunity,” Bezos said. “I don’t want to reduce it, I want to eliminate it. I think there’s something very powerful about zero.”
Mr. Bezos said he would advocate for tax cuts in Washington, but did not specify how.
Politically, Bezos’ policy proposals blend elements of liberal and conservative thought.
Libertarians and conservatives traditionally advocate cutting taxes across the board. President Donald Trump has made tax cuts a signature effort during both of his terms.
In contrast, progressives and Democrats typically focus on cutting taxes for low-income Americans and raising taxes on the wealthy.
New Jersey Democratic Sen. Cory Booker recently introduced a bill that would reduce taxes on the first $75,000 of income for households filing jointly by increasing the standard deduction. Tax rates for high income earners will rise.
The United States has a progressive income tax system, where taxpayers pay more taxes as their taxable income increases.
Half of Americans already pay 97% of their taxes
According to an analysis by the nonpartisan Tax Foundation, the top half of taxpayers pay 97% of all federal income taxes, while the bottom half pays only 3%.
Eliminating income taxes for the bottom half of taxpayers would make tax policy even more progressive, with the top half of taxpayers paying 100% of the tax.
Mr. Bezos’ proposal “sounds grander than it is,” said Matt Gardner, a senior fellow at the left-leaning Institute on Taxation and Economic Policy. He said the tax law “already contains provisions that reduce taxes for middle- and low-income households.”
“The real problem with the current federal tax system is how it treats the wealthiest Americans, people like Mr. Bezos himself,” he said.
According to IEP research, Amazon benefited from $17.4 billion in federal income tax cuts in 2025.
Bezos said in an interview with CNBC that raising taxes on billionaires won’t help low-income Americans.
“I can double the taxes I pay, but it’s not going to help that teacher in Queens, I promise you that,” Bezos said.
New York City Mayor Zoran Mamdani responded on X: “I know some teachers at Queen’s who would like to disagree.”
