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Jeff Bezos: The bottom half workers pay 3% of all taxes, it should be zero

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The Bottom Half Should Pay Zero Taxes, and We Have a Spending Problem

We already have the most progressive tax system in the world, and I think the bottom half should pay zero. But the real problem is that we don't spend well, and that's a skills issue.

The Tale of Two Economies

What's driving all the wealth inequality headlines right now? It does seem different from ten years ago, and I've been thinking hard about why. The answer is that it's a tale of two economies. A lot of people in this country are doing really well, but a lot of people are also struggling. Struggling to pay rent, struggling to pay for groceries.

Politicians are responding to that with an age-old technique: pick a villain and point fingers. The problem is that doesn't solve anything. If you want to help the people who are actually struggling, you have to find the real root causes and real solutions, and that takes skill. At Amazon, if we have a problem, we do the five whys, you dig until you get to a root cause, you find a root fix, and when you fix it at the root, you fix it forever. What we don't do is point fingers and blame people. It might feel good for ten seconds, but it doesn't accomplish anything.

Start Here: The Nurse in Queens

I started thinking about this and doing some research. A nurse in Queens who makes $75,000 a year pays more than $12,000 a year in taxes. Does that really make sense?

People talk about making the tax system more progressive. Fine, let's start there. How about we start by having that nurse not pay taxes at all? Why is someone at that income level paying more than $1,000 a month to the federal government? That's $1,000 a month that could go toward rent, groceries, anything. We should not be asking that nurse in Queens to send money to Washington. We should be sending her an apology.

The Numbers That Make This Obvious

Here's the thing that really crystallized it for me: the bottom half of income earners in this country pay only 3% of all tax revenue. Three percent. That's a small amount of money for the government, and anyone who knows how the federal budget works knows that. And yet we're extracting it from the people who can least afford it.

My position is that 3% should be zero. Not as a radical move, but as the logical conclusion of a tax system that's already supposed to be progressive. The top 1% of taxpayers already pay 40% of all tax revenue. We already have the most progressive tax system in the world. Eliminating the bottom half's contribution entirely makes it more progressive, not less, and it costs the government a trivially small share of total revenue.

The Fair Share Debate Is Fine, Vilification Isn't

Is it a valid policy debate to ask whether wealthy people should pay more? Absolutely. We can argue about what “fair share” means. That's a legitimate conversation. What isn't legitimate is the vilification, because the vilification is just a distraction from the actual hard work of finding solutions.

And here's the honest accounting: we don't have a revenue problem in this country. We have a spending problem. That distinction matters enormously, because the solution to a revenue problem is to collect more money, and the solution to a spending problem is to develop competence.

The New York City Schools Example

Consider the New York City school system. They spend $44,000 per student. That's 30% more per student than other major cities like Chicago, Los Angeles, and Boston. It's three times more than Miami and Houston. And New York City doesn't get better outcomes.

If we ran Amazon the way New York City runs their school system, your packages would take six weeks to arrive, we'd have to charge you a $100 delivery fee, and when the package finally showed up, it would have the wrong item in it anyway.

That's not a funding problem. That's a skills issue. It's a competence issue. And the same logic applies to the broader federal spending picture. Throwing more revenue at a system that doesn't spend well doesn't help the nurse in Queens, it just adds to the amount that gets wasted before it ever reaches her.

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What's his core argument?

8 sections · Created May 26, 2026

0:00Good morning. We are here on the factory floor this morning of Blue Origin, and we are here with Jeff Bezos, the founder of Blue Origin, also, of course, the founder of Amazon. It is great to see you. This is remarkable, just the scale of it. But of all the people we could talk to about everything that's going on in the country right now, the economy, AI, jobs, space, we want to talk to you. One of the topics I thought we should start with: these days it feels almost impossible to pick up a newspaper without reading a headline about wealth in America,

0:47about the billionaire class, about wealth inequality and policy, and everything else. And it's taken a uniquely critical turn. I'm so curious, before we even get into everything else, what you think about that right now. Well, first of all, Andrew, I'm glad you're asking the question. I think it's a really important topic. I have been thinking about what is driving this. It does seem different from 10 years ago. And I think what's going on is that it's kind of a tale of two economies.

1:34So you have a bunch of people in this country who are doing really well, but you also have a bunch of people who are struggling. Struggling to pay rent, groceries. And what's happening here is politicians are using the age-old technique of picking a villain and pointing fingers. But the problem is that doesn't solve anything. If you want to help the group of people who are struggling, you have to figure out real root causes and solutions, and that takes skill.

2:21The way we would fix it at Amazon is we'd do the five whys and try to get to a root cause, find a root fix, and when we fix it at the root, you're fixing it forever. What we don't do, because it doesn't work, is just point fingers and blame people. It might feel good for ten seconds, but it doesn't accomplish anything. So I started doing some research. A nurse in Queens who makes $75,000 a year pays more than $12,000 a year in taxes.

3:08Does that really make sense? People talk about making the tax system more progressive. How about we start by having the nurse in Queens not pay taxes? That's $1,000 a month that could help with rent or groceries. And the bottom half of income earners in this country? They pay only 3% of the taxes. It's a small amount of money for the government.

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Elon Musk, “In 36 months, the cheapest place to put AI is space”

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A few clear threads run through everything you've saved.

The first is the economics of AI and labor.

Jeff Bezos argues the bottom half of earners should pay zero federal tax, and that the real problem isn't revenue but government competence.

Elon Musk, meanwhile, frames compute moving to space within thirty-six months.

Different topics on the surface, but both are really about where value and cost are about to shift, and who captures the upside.

The second thread is the economics of running AI.

Your saved piece on small models matching larger ones sits right next to Howard Marks on market cycles and the case against vertical agents.

They keep circling one question: as the cost of capable AI collapses, where does the value actually get captured, and by whom?

The third is a frustration with institutions that spend without discipline.

Bezos uses New York City schools, forty-four thousand dollars per student for worse outcomes, and that skepticism runs through your other notes too.

The throughline is competence over budget.

There's also a quieter thread about attention, that the scarce resource isn't information but the discipline to act on it.

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