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Here are the blue states ‘blocking’ Trump’s popular tax cut provisions
NY Post ^ | 12/26/25 | Josh Christenson

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 ...


TOPICS: Business/Economy; Conspiracy; History; Local News
KEYWORDS: blue; populartaxes; tips

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...and a new tax deduction for seniors who depend on Social Security...

Could be hugh.

1 posted on 12/27/2025 2:48:29 AM PST by Libloather
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To: Libloather

and series too!


2 posted on 12/27/2025 2:59:40 AM PST by usconservative (When The Ballot Box No Longer Counts, The Ammunition Box Does. (What's In Your Ammo Box?))
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To: Libloather

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.


3 posted on 12/27/2025 3:11:01 AM PST by MayflowerMadam ( "Trouble knocked at the door, but, hearing laughter, hurried away". - B. Franklin)
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To: Libloather

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?


4 posted on 12/27/2025 3:25:48 AM PST by PJ-Comix (Yes, I am the Toxic Troll Terminator)
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To: Libloather

All about their cities.


5 posted on 12/27/2025 3:26:15 AM PST by WhiteHatBobby0701
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To: Libloather

They keep voting for leftist dmocratic scum and you get what you get. No sympathy.


6 posted on 12/27/2025 3:43:48 AM PST by maddog55 (The only thing systemic in America is the left's hatred of it!)
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To: Libloather

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


7 posted on 12/27/2025 3:54:06 AM PST by BamaBelle (Psa 143:8 - ...cause me to know the way wherein I should walk; for I lift up my soul unto thee.)
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To: BamaBelle

All income tax cuts are good and all tariffs are good. Live it learn it love it.


8 posted on 12/27/2025 4:02:22 AM PST by central_va (I won't be reconstructed and I do not give a damn... )
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To: Libloather

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...]


9 posted on 12/27/2025 4:04:11 AM PST by Adder (End fascism...defeat all Democrats.)
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To: central_va

My main issue is that they are saying it helps everyone on SS... it doesn’t.


10 posted on 12/27/2025 4:24:25 AM PST by BamaBelle (Psa 143:8 - ...cause me to know the way wherein I should walk; for I lift up my soul unto thee.)
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To: Libloather

I live in Tennessee. We have a state sales tax of 9%. There is no income tax. We also don’t buy much. It was the primary reason we chose to reside in Tennessee. We consider a sales tax to be one we can adjust our purchasing decisions over. We fix, repair, repurpose, most things.


11 posted on 12/27/2025 4:43:02 AM PST by blackdog (The philosophy of the schoolroom in one generation will be the philosophy of government in the next.)
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To: MayflowerMadam

You have too much faith in our voting public. Mainly the brain dead females.


12 posted on 12/27/2025 4:43:30 AM PST by Hyman Roth
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To: MayflowerMadam

Stupid Blue Delaware also got into the act and decoupled our deductions from the Federal law on allowable deductions.


13 posted on 12/27/2025 5:20:06 AM PST by Hartlyboy
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To: BamaBelle

BamaBelle wrote: “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”

Social Security isn’t taxable income in Alabama.


14 posted on 12/27/2025 5:30:04 AM PST by DugwayDuke (Most pick the expert who says the things they agree with.)
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To: MayflowerMadam

EXCEPT most of them won’t even KNOW they are supposed to get the tax break!!! That is, unless they heard it on TIK TOK!


15 posted on 12/27/2025 5:54:57 AM PST by Ann Archy (Abortion.....the HUMAN Sacrifice to the god of Convenience.)
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To: Libloather

Let ‘em rot. That’s what they want.


16 posted on 12/27/2025 6:01:40 AM PST by WKUHilltopper
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To: DugwayDuke

Doesn’t change the fact that they are being misleading when they imply ALL SS folks will benefit from the tax cut on SS. Many of us in all states make too little to be taxed, so no benefit. The SS tax relief only benefits the higher incomes.


17 posted on 12/27/2025 6:06:47 AM PST by BamaBelle (Psa 143:8 - ...cause me to know the way wherein I should walk; for I lift up my soul unto thee.)
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To: DugwayDuke

Meant to also say that is state tax, not federal. Pretty sure I’m right about that. Someone correct me if ai am wrong.


18 posted on 12/27/2025 6:11:14 AM PST by BamaBelle (Psa 143:8 - ...cause me to know the way wherein I should walk; for I lift up my soul unto thee.)
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To: MayflowerMadam
But you just don't understand. Illinois desperately needs that money to pay for the expensive hobby it has of gathering and subsidizing generational poverty and "recent arrivals".

/s

About 60-65% of the population in Illinois resides in Chicago, or in the suburbs around Chicago where the liberals who used to live in Chicago moved to because they could not tolerate the outcomes they vote for in the city.

Then there are a few pockets of dem voters in the Quad Cities, Springfield, and St. Louis suburbs east of the Mississippi. Other than that, and Section 8 havens in Rockford etc., the voting population in Illinois is composed of normal people.

19 posted on 12/27/2025 6:27:54 AM PST by Bernard ("Nothing is as expensive as that which the government provides for free." - Ronald Reagan)
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