New York City Mayor Zohran Mamdani and Amazon founder Jeff Bezos have publicly clashed over tax policies, with Bezos advocating for zero federal income taxes on the bottom half of earners and Mamdani pushing for higher taxes on billionaires to fund city services.
Bezos Calls for Zero Taxes on Lower Earners
Bezos, the world's fourth-richest person, told CNBC that the bottom half of U.S. taxpayers—who currently pay about 3% of federal income taxes—should pay nothing. He argued that eliminating these taxes would ease financial strain and encourage entrepreneurship. The top 1% of households, which pay about 40% of federal income taxes, earn at least $676,000 annually, while the bottom half earn nearly $54,000.
Mamdani Defends Taxing the Wealthy
Mamdani responded to Bezos on X, stating that teachers in Queens would benefit from higher taxes on billionaires. The mayor and New York Gov. Kathy Hochul are backing a proposed pied-à-terre tax on luxury second homes worth $5 million or more, which Mamdani estimates would generate $500 million annually. However, the city's comptroller has warned the revenue could be lower.
Broader Tax Debate
Bezos' comments come as Democratic lawmakers propose new wealth taxes, including a measure in California to tax billionaires and Sen. Elizabeth Warren's Ultra-Millionaire Tax Act. Meanwhile, Republicans have pushed for tax breaks that critics say benefit the wealthiest households. Sen. Corey Booker has also proposed the Keep Your Pay Act, which would make the first $75,000 of income tax-free for households.
Economic Context
The average income tax rate in 2023 was 14.1%, with the top 1% paying an average rate of 26.3%, compared to 3.7% for the bottom half. New York City teacher salaries range from $68,902 to $80,166, depending on education and experience, and are set to rise in 2026.