Worker relief

Bezos wants workers to have more money, just not from him

Amazon founder calls for low earners to pay no federal income tax, bravely avoiding the parts where employers pay more and billionaires get taxed properly.

An editorial illustration of Jeff Bezos pulling an income tax lever while a locked pay people properly lever sits beside machines labelled rent, debt and food prices
The income-tax lever worked perfectly. The pay-people-properly lever remained unavailable for shareholder reasons.

Jeff Bezos has found a version of helping workers where employers, by a strange and beautiful coincidence, do not have to pay them more.

The Amazon founder said low earners should pay no federal income tax, which sounds surprisingly progressive until you spend one full second wondering why a billionaire is suddenly so excited about this particular tax.

Federal income tax is a lovely tax for billionaires to talk about, because for ordinary workers it sits right there on the payslip, looking guilty. You can point at a nurse, a warehouse worker or a teacher and say, with some force, “Why are we taxing this person so heavily?”

But the scandal is not that workers contribute to society. It is that they are paid too little, charged too much, and then invited to experience tax as the final little kick in the ribs.

A better society would pay people enough that an affordable tax contribution felt like belonging, not being punished for surviving.

Bezos’s version keeps the camera on the payslip, which is convenient.

Wealth does not usually arrive on a payslip. It sits in shares and property, grows through unrealised gains, and passes through trusts, inheritance structures and accounting arrangements that require both a lawyer and a priest. You do not see it neatly deducted every month. That is the point.

So naturally, Bezos wants to talk about the tax on wages, not where the wealth is.

Economist Gabriel Zucman then spoiled the trick by counting the taxes Bezos did not mention: payroll taxes, state and local income taxes, sales taxes, excise duties and all the other collection points ordinary people pass through just to exist. Count those too, and the heroic-rich-people story starts looking a lot more like ordinary people paying through the nose while billionaires ask everyone to admire the wrong spreadsheet.

Zucman has estimated Bezos’s own effective tax rate at 15.2% in 2018, with his federal rate at 1.9%. So yes, obviously, the urgent moral crisis is the income-tax line on the warehouse worker’s payslip.

The second trick is moving the conversation from what employers pay to what workers take home after tax.

That sounds technical. It is also the whole game.

The employer decides the wage. The government decides how much tax comes off it. Bezos is very interested in the second part, because the first part is where companies have to open their wallets and the mood tends to change.

There is another lever in the room. It is labelled: pay people enough fucking money.

This lever is less popular among people whose business model depends on paying workers as little as they can get away with, then wondering aloud why government is being so mean to them afterwards.

A tax cut starts after the employer has already done its bit: set the wage, set the conditions, taken the labour and kept the margin. Only then does the billionaire arrive, deeply concerned about fairness.

Not “why is this worker paid so little?” fairness.

“Why is the government touching it?” fairness.

That is why tax cuts are the billionaire’s favourite form of worker relief: the state leaves more in the worker’s account, the employer calls it good news and contributes fuck all.

Letting workers keep more after tax can help. Of course it can. People are skint. Help them.

But if wages stay low while rent stays high, debt stays expensive, food costs luxury money and childcare keeps behaving like a second mortgage, then the relief has not escaped the system. It has entered it.

Relief can be real and still be absorbed.

Give workers a bit more after tax without changing who owns the basics, and the owners will price it in. Rent will notice. Lenders will notice. Childcare will notice. Groceries will somehow notice before the money has even cleared.

And Amazon is not just a shop. It is the shop, the warehouse, the delivery route, the ad network, the subscription, the marketplace taking seller fees and half the internet underneath it.

It does not need to mug the tax cut in an alley. It can just stand at every exit.

That is the move: help just enough to look decent, then stop before the bill reaches anyone with a yacht.

Workers are there for the sympathetic bit. Billionaires are there by omission, which is where billionaires tend to do their best work.

He has not proposed that workers get more money from the people who pay them.

He has proposed that the government take less, so everyone else can carry on.

Funny how the money never seems to come from the billionaire.