Elizabeth Warren’s False Claim About Jeff Bezos’ Tax Payments Exposed

Senator Elizabeth Warren (D–Mass.) has once again criticized Amazon founder Jeff Bezos over his tax obligations, this time referencing his $10 million sponsorship of the Met Gala.

"If Jeff Bezos can drop $10 million to sponsor the Met Gala, he can afford to pay his fair share in taxes," Warren wrote on X.

Her statement raises a critical question: What constitutes Bezos’ "fair share" of taxes? According to Forbes, he likely paid approximately $2.7 billion in taxes in 2024.

Bezos’ wealth is primarily tied to his ownership of Amazon stock. When he sells shares, he pays taxes on the realized gains—just as all taxpayers do. Taxing unrealized gains, or the theoretical value of stock before it is sold, would be unprecedented and impractical.

Even progressive lawmakers, including Rep. Ro Khanna (D–Calif.), have acknowledged the flaws in such a tax. Khanna previously argued that taxing unrealized gains could discourage entrepreneurs from reinvesting in their companies, forcing them to liquidate assets to private equity firms instead.

Additionally, an unrealized gains tax would create further complications. If a company’s stock value declines after taxation, should the government refund the difference? The lack of reciprocity makes this approach unworkable.

Debunking the Myth of the Under-Taxed Rich

The broader claim that the wealthy pay less in taxes than others is also false. The U.S. tax system is highly progressive, meaning higher-income earners bear a disproportionate share of the tax burden. For federal income tax alone, over 97% of revenue comes from the top half of earners.

While some states, such as New York and California, have proposed additional taxes on the wealthy, there is a risk of capital flight. High earners may relocate to states with lower tax burdens, undermining revenue goals. The federal government already collects substantial taxes from top earners, raising questions about the necessity of further increases.