Rajya Sabha MP Milind Deora today hailed India’s tax system, keeping the lower working class immune from high taxes in response to Jeff Bezos’s viral comments.

The discussion unfolded on X after Bezos said that the United States should completely eliminate federal income tax for the bottom half of earners, saying lower-income Americans are paying disproportionately high taxes despite struggling with rising living costs.

What Jeff Bezos said

Bezos retweeted a video of him in an interview with CNBC and said the American tax system could become far more progressive if lower-income workers were exempted from federal income tax altogether.

“One per cent of taxpayers pay 40 per cent of all the tax revenue; the bottom half pay only three per cent. I think it should be zero,” Bezos said, adding that “there’s something very powerful about zero.”

Using the example of “a nurse in Queens earning $75,000,” Bezos questioned why lower-income workers continue to face sizeable monthly tax deductions.

“Why is a nurse in Queens who makes $75,000 a year paying more than $1,000 a month in taxes? That’s $1,000 a month that could help with rent, groceries or anything,” he said in the video.

The billionaire entrepreneur also cited Amazon employees earning around $50,000 annually, saying taxing such workers heavily made little sense.

“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,” Bezos said.

Milind Deora points to India’s tax model

Responding to Bezos’ tweet, Deora said that India follows a comparatively progressive tax structure that shields large sections of lower-income citizens from income tax.

“Jeff, India offers a useful model. Less than 4% of Indians pay income tax, agricultural income is exempt for 60% of Indians & incomes up to $7,500 effectively pay zero tax under rebates. Ours is the world’s most progressive tax system, protecting the less affluent while widening opportunity,” Deora said on X.

His remarks showcased India’s rebate-based income tax structure, where many lower-income salaried individuals effectively pay no tax after exemptions and rebates under the new regime.

Why the remark matters

The exchange of views comes amid growing global conversations around wealth inequality, taxation and rising living costs. In the US, discussions around taxing billionaires and large corporations have intensified in recent years, especially as inflation, housing costs and healthcare expenses continue to pressure middle- and lower-income households.

Bezos’ comments also arrive during a heated debate in California over a proposed “Billionaire Tax Act,” which seeks to impose a one-time 5% tax on individuals with assets exceeding $1 billion. The proposed revenue would reportedly be used to offset cuts in healthcare and social welfare spending.