Posted on 12/27/2025 2:48:29 AM PST by Libloather
WASHINGTON — Just eight states are on track to allow their residents to cash in fully on popular tax cuts from President Trump’s marquee legislation in 2026, experts told The Post, with several blue states unwilling to give workers an additional break.
The One Big Beautiful Bill Act exempted federal taxes on tipped wages and overtime pay, but hard-working residents will still have to pay state taxes on that income — unless local elected leaders step up.
Democratic strongholds like New York, Illinois and California have so far declined to extend state-level tax breaks, Reuters first reported, citing billions of dollars in potential budget shortfalls.
Other blue and red states alike have yet to signal whether they will take up legislation in the new year to conform to the federal tax code by changing the definition of what qualifies as taxable income. States like New Jersey are open to some of the provisions like not taxing tipped workers.
Treasury Secretary Scott Bessent earlier this month accused several blue states — including Illinois and New York — of playing Ebenezer Scrooge this holiday season by “deliberately blocking” the popular One Big Beautiful Bill Act provisions, which will begin taking effect on Jan. 1.
Those included “No Tax on Tips for dedicated service industry staff, No Tax on Overtime for linemen and factory workers, and a new tax deduction for seniors who depend on Social Security,” among others, Bessent charged.
(Excerpt) Read more at nypost.com ...
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Jim
Could be hugh.
and series too!
I’m kinda glad the blue states are doing this. People who would benefit from tax relief on tips and OT will have a clear view of the difference between Democrats and Republicans.
Maybe this knowledge will encourage them to make better choices in the voting both.
Bu...but don’t the people in California balance that out with much lower gasoline prices? It MUST be true since CA is an oil producing state so their gasoline prices must reflect that. Right? Right?
All about their cities.
They keep voting for leftist dmocratic scum and you get what you get. No sympathy.
Doesn’t help those of us who draw too little on SS to pay taxes. They keep acting like it helps everyone on SS, but it only helps those that draw the most...sigh
All income tax cuts are good and all tariffs are good. Live it learn it love it.
but hard-working residents will still have to pay state taxes on that income
More surprising is they they did not increase rates, since those folks are flush with cash now...
[yeah...its sarc...]
My main issue is that they are saying it helps everyone on SS... it doesn’t.
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