World's fourth-richest man and Amazon founder Jeff Bezos has called for zero federal income tax on the bottom half of earners in the US. In an interview with CNBC on Wednesday (May 20), Bezos repeatedly criticised taxation on lower-income workers, using the example of a "nurse in Queens earning $75,000".

"One per cent of taxpayers pay 40 per cent of all the tax revenue; the bottom half pay only three per cent. I think it should be zero," said Bezos, adding: “There's something very powerful about zero.”

With an estimated net worth of $267.3 billion as of Wednesday, Bezos said the income tax paid by lower earners was a 'small amount of money' for the government, whilst offering a hypothetical example.

"You have a bunch of people in this country who are doing really well, but you have a bunch of people in this country who are struggling," said Bezos.

"Some people talk about making the tax system more progressive. How about we start by having the nurse in Queens not pay taxes? Why is a nurse in Queens who makes $75,000 a year paying more than $1,000 a month in taxes? That's $1,000 a month that could help with rent, groceries, or anything," he added.

Bezos later used the example of an Amazon worker in New York making around $50,000 a year, calling the idea of taxing them 'absurd'.
“Why are you taxing them so much? I really am puzzled by this.”

Amazon Workers Under Bezos

While Bezos bats for no tax on low earners, a Forbes report highlights a sharp pay gap between Amazon and UPS delivery drivers, citing research from Harvard University's Shift Project. As per the report, unionised UPS drivers earn $35 per hour, while Amazon drivers average just $19 per hour.

Consequently, financial distress is common among Amazon couriers, with 26 per cent facing hunger and 33 per cent struggling to pay utilities. High turnover compounds this instability, as most have under a year of experience and low prospects for long-term employment.

Bezos' statement comes at a time when a proposed billionaire tax in California has been under heated debate. Under the Billionaire Tax Act, California residents worth over $1 billion would face a one-time tax totalling five per cent of their assets, which would be used to offset federal cuts to health services for lower-income people.

– Agencies