NY finally gets onboard with Trump's no taxes on tips

During the 2024 presidential campaign, President Donald Trump really started to push no taxes on tips for the service industry. This was specifically to draw in voters in states like Nevada that have a huge service industry workforce.

Not everyone was on board when Trump signed the bill into law, but this week the high-tax state of New York finally showed its support for the plan.

The BBB

In August, House Ways and Means Committee Chairman Jason Smith (R-MO) stated, “No tax on tips helps fulfill President Trump’s vision of tax cuts for the working men and women who were left behind by Joe Biden and Washington Democrats. It’s truly sad and unfortunate that House Democrats voted against a $1,300 tax cut for waitresses, delivery drivers, barbers, and bartenders.

“This tax cut makes it that much easier for working Americans to make ends meet and have a little left over at the end of month.”

This is not a policy I supported, and this is coming from someone who spent nearly three decades in the service industry and worked as both a server and bartender at one point.

I just never thought it was fair for someone who makes $50,000 a year in salary to pay full taxes when someone who makes the same amount in tips gets a free ride.

Californians Seething

Before Trump started to tout this policy, Democrats were all for it. But we all know that once Trump likes something, Democrats hate it.

Some blue states decided not to put the policy in play, and they started to see significant pushback because of it.

Alex Frost, a longtime bartender at Baja Cantina in Marina del Rey, was among those who were unhappy about his state not adopting the policy.

He stated, “It would put a lot more money in my pocket if they didn’t tax [tips. I don’t really quite understand it. I mean, California already taxes you more than any other state. I don’t see what they need my money.”

Hochul Caves

New York was another city that was not adopting the policy, but that changed this week, as Governor Kathy Hochul finally gave in.

She stated, “I’m kicking the new year off with a proposal of no state income tax on tips, continuing my efforts to make New York more affordable for hard-working New Yorkers.”

Nassau County Executive Bruce Blakeman, who is running against Hochul in the upcoming election, stated, “I see Kathy Hochul is doing a u-turn on taxing tips. I was told she changed her mind after I said I would never tax tips. Kathy if you want more of my ‘tips’ on how to govern just continue to follow my lead.”

We will see if it works for Hochul and if California follows suit. Like I said, I don’t like the policy because it picks one segment of the workforce to give a huge break to, and I just don’t think it's fair.