Zero tax for the working class, could it work?

Added: 2026-05-22

[00:00:06]We got to talk about taxes. And before you your eyes glaze over and you say uh hard pass, uh we're not talking about line items on a budget and we're not talking about um you know the um the inclusion rate of any particular tax.

[00:00:22]We're talking about the idea of taxes, what they're for, what they're intended to do. Sometimes they are used as a carrot and other times they're used as a stick. And more and more these days, it feels like there is an idea out there that that that taxes are supposed to be punitive. We're supposed to be punishing people with taxes so that those who have have it um have been hard by by society are relieved of their experience in some way. And uh we hear about it with Zoron Mdani. We've heard about it from Justin Trudeau. Uh and and and I we sort of wanted to flip the switch and talk about possibilities. You know, maybe today is the opportunity to blue sky some ideas on how we can reinvent how we tax people and and why we tax people. And Jeff Bezos, the fourth richest man in the world who has made uh li our lives completely different. You can say better or worse, but different with Amazon uh was doing a big interview and and he said some pretty bold things. Um, not the least of which is that the bottom half of Americans should pay zero federal income tax.

[00:01:45]And before you think to yourself, wow, that's a big deal. Well, it would be a big deal for that 50%. But in terms of the contribution to the overall uh revenue of the federal government, it represents 3% of the taxes. 50% of the people, the top 50% pay 97%, the bottom 50% pay 3%. And so you could make that 3% up elsewhere and it would mean quite a lot to those people. Let's let's start uh with his idea of um he gives the example of a nurse in Queens. I want to start there. A nurse in Queens who makes $75,000 a year pays 12 more than $12,000 a year in taxes.

[00:02:32]Does that really make sense? So people talk about, you know, making the tax system more progressive. How about we start by having the nurse in Queens not pay taxes? Why is somebody at all? Why is some Why is a nurse in Queens who makes $75,000 a year paying more than $1,000 a month in taxes?

[00:02:53]>> That's $1,000 a month that could help with rent or groceries or anything. And so, and and by the way, do you know what that all adds up to? The the the bottom half of income earners in this country pay only 3% of the taxes.

[00:03:09]>> It's only 3%.

[00:03:10]>> Yeah. Listen, there's logic there. So we let we'll follow the logic. I mean he he he did also say like there's he knows that he and other billionaires are perceived. He knows how they're perceived, right? He knows that in the narrative uh of 2026 there are roles that people play. Sometimes it's roles that are due to them and due to the things they do and other times it's because somebody ascribes them that role. So, it doesn't change the fact that if someone was writing a story about life in 2026, there would be some people with black hats and some people with white hats. I'll give you I'll give you a guess. Who do you think Mike Jeff Bezos he's knows he's seen as?

[00:03:50]>> I think what's going on is that it's kind of a tale of two economies. So you have a bunch of people in this country who are doing really well, but you also have a bunch of people in this country who are struggling, struggling with pay rent, groceries. And so what's you know what's happening here is uh politicians are using the kind of age-old technique.

[00:04:14]So there's this tale of two economies and they're using this age-old technique of you know picking a villain and pointing fingers. Uh but the problem is that doesn't solve anything.

[00:04:26]>> Well, he's right. It doesn't solve anything. And also it's it is so uh devoid of nuance to say that there are bad guys and good guys. I can promise you in any given day I do things that would uh would would put me on the positive side of the ledger and there are things I would do that probably wouldn't. And again, if we were to be judged on the worst things we've ever done, we would all be going to the fiery pits of hell. uh if we were judged on the greatest thing we ever did, uh we would be right there with a VIP pass through the gates of heaven. Uh so, and none of us are either one of those things. And and yet politicians very much want to ascribe villain and heroism as it suits their purposes. Uh if you want my two cents, and we're talking taxes, so somebody wants those two cents, this is uh it's a very good idea for for a number of reasons. the tax relief for the bottom 50%. But it's also it's also um Jeff Bezos coming up with a pressure relief valve for that ascribing of villain. This would be a way to get everybody to shut the f up.

[00:05:36]Some loud voices to shut the f up. If if Jeff Bezos was able to get the taxes, the income taxes reduced completely to for 50% of Americans, he would be doing more to alleviate poverty than mom Donnie could ever do in five lifetimes in a fever dream. Like ever. That would be significant, especially if it was coupled with additional ways to raise revenue elsewhere. Uh, but the problem with a binary system with good guys and bad guys is um well, nobody ever thinks they're the bad guy, right? Nobody ever thinks they're the bad mom. Donnie thinks he's a good guy. And and and here's Bill Maher, a voice of logic, talking about, you know, what happens if you keep coming after the people you think are the bad guys.

[00:06:22]>> The top 10% pay 72% of all federal income taxes and the bottom half 3%. The Democratic Socialists talk about socialism like we don't already have a lot. Social Security, unemployment, Medicare, nutritional assistance, Medicaid, Obamacare, disability, housing subsidies. Again, not against it. Just the same question. How can you be soaking the rich and failing the poor so badly? [applause] And of course, we know that Mayor Mom Donnie uh who sees the world in through the eyes of a simpleton uh the eyes of a young poor people good, bad people rich bad. Yeah, that's pretty that works. Um you see it that way then and when the world doesn't pan out that way, you have a problem. And he's already been saying enough to scare capital out of New York City. A lot of people have left. A lot of money has left. and more and more companies, corporations, entire executive offices are decamping for places where they are more welcome. And now he has to do damage control. He went to visit with Jamie Diamond, who's CEO of of of a huge uh investment bank, JP Morgan, and in the hopes of building bridges and keeping that company in New York. Now, for the record, JP Morgan already has a larger headcount in Texas than they do in New York. But here's what Jaime Diamond said about Mom Donnie. quote, "I don't care what he says. What does he do? I will judge that because you can talk about morality and ideology all you want, but if things don't get better, you didn't do a good job." And here's some numbers for you about JP Morgan. If JP Morgan pulls the stakes in New York City, they would lose roughly 61 million in corporate taxes alone. Hundreds of millions of dollars in taxes related to payroll and property tax. And you know, that's a big number, but it's not it's a big number without a comparison. It would take more than 50,000 average earning New Yorkers to equal that tax revenue. JP Morgan goes, it's like 50,000 people leave your city.

[00:08:23]Except a lot of those people again, they don't put their kids in public school.

[00:08:27]They're not taking the bus. They're not taking the subway. They're not going to hospital. They're going to emergency rooms. That's what you would be losing.

[00:08:33]You'd be losing all of the money and none of the pressures on your resources.

[00:08:38]Uh and we got a text uh on um on the text line regarding Jeff Bezos. He said that would be great. no tax, so we'd have more money to buy stuff on Amazon.

[00:08:47]That's good thinking, Jeff. Well, I mean, unless you're unless you're going to tell people how to spend their money.

[00:08:53]Um, uh, yeah, they can do what they want with it. It's they have agency over themselves. They are individuals and we live in a country where you can make your own choices, good or bad. Like I said, we're all endowed with the ability to make both. Uh, but I'm not going to tell somebody how to spend their money, and if that's the stuff they want to spend it on, that's the stuff they want to spend it on. Thanks so much for watching the show. Now, if you enjoyed what you saw, hit that subscribe button so you never miss another episode of the Ben Rooney