Liberal Economists Score an Own Goal Against Bezos
Liberal economists have criticized Jeff Bezos's assertion that the U.S. tax system is progressive. They argue that working-class individuals contribute significantly through payroll and consumption taxes. This debate highlights a tension within liberal doctrine regarding the classification of payroll taxes as either taxes or contributions.
- ▪Jeff Bezos claimed that the U.S. has the most progressive tax system, with the top 1% paying 40% of taxes.
- ▪Liberal economists Gabriel Zucman and Justin Wolfers countered that payroll and consumption taxes significantly impact working-class contributions.
- ▪The argument over payroll taxes reflects a longstanding liberal perspective that views them as contributions rather than taxes.
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Liberal Economists Score an Own Goal Against Bezos by Alex Tabarrok May 24, 2026 at 7:18 am in Economics Law Medicine Jeff Bezos tweeted: Yes, the United States has the most progressive tax system in the world. The top 1% pay 40% of taxes, the bottom 50% pay 3% of taxes. We can make it even more progressive by zeroing out taxes on the bottom half. It’s a small amount of the total tax revenue but very meaningful to people in this group. Strangely, a chorus of liberal economists rushed to attack Bezos. Gabriel Zucman replied: Contrary to what you claim, working-class people contribute significantly to funding American society today. Payroll taxes and consumption taxes absorb a high fraction of their income. Justin Wolfers piled on: If you only count the progressive taxes the U.S.
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