Jeff Bezos proposes zero federal income tax for bottom half of earners; data shows low earners already pay minimal rates
By
Sarah Agostino, Greg Iacurci, Kelli Grant, CFP®
4d ago· 4 min readenNews
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Summary
Jeff Bezos proposed eliminating federal income taxes for the bottom half of earners. The article examines current tax burden data from the Tax Foundation, showing that the top 1% of taxpayers paid an average rate of 26.3% in 2023, while the bottom half paid an average of 3.7%. It notes that when counting refundable tax credits, the bottom 40% of taxpayers already pay no income tax on average. The piece discusses tax policy implications and the distribution of tax burdens across income levels.
Key quotes
· 5 pulledThe average income tax rate in 2023 was 14.1%, according to a Tax Foundation analysis of IRS data.
The top 1% of taxpayers paid an average rate of 26.3%, seven times higher than the 3.7% average rate paid by the bottom half of taxpayers.
There were more than 76 million households in the bottom half in 2023, according to the Tax Foundation.
They paid $913 of federal income taxes, on average, that year.
When counting refundable tax credits, the bottom 40% of taxpayers already pay no income tax, on average, said Erica York, vice president of federal tax policy for
Amazon Executive Chairman Jeff Bezos on Wednesday called for zero federal income taxes on the bottom half of earners.
