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More Tax on Tips: Blue States Undercutting New Federal Tax Cuts

Posted on Tuesday, December 16, 2025
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by Outside Contributor
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101 Comments
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Filthy, vile, and disgusting. And I would add: reprehensible, repulsive, and rebarbative.

These words perfectly describe the latest Democrat scheme to shaft industrious, economically embattled Americans, all so that the Left can get President Donald Trump.

There are no depths too low for Democrats to dig to hurt this president. They were at Sub-basement Level 14 and have now jackhammered their way to Sub-basement Level 15.

The Trump/GOP “One Big, Beautiful Tax Cut” includes no tax on tips, no tax on overtime, and a new tax-deduction for Social Security benefits. These promises helped Trump secure the White House and Republicans the U.S. House and Senate.

The GOP’s huge win in November 2024 gave Republicans a solid mandate to keep these promises. And they did.

Nonetheless, the Democrat-mismanaged states of Colorado, Illinois, Maine, and New York are rigging their tax codes so that this Trump/GOP tax relief does not reduce corresponding state levies. The same holds for Democrat-smothered Washington, D.C., which will keep higher taxes on 13 of the GOP’s 84 federal tax-cut provisions.

Colorado’s House Bill 25-1296, decoupled its state taxes from these federal tax reductions. So, next April 15, factory workers will have to render unto Democrat Gov. Jared Polis the overtime pay break that Trump and Republicans let them enjoy.

Bartenders and waitresses who applaud federally tax-free tips in New York must obey Democrat Gov. Kathy Hochul. The updated IT-225 tax form will require their “Add-back of exempt tip income.” 

What Trump and Republicans giveth in Washington, Klueless Kathy taketh in Albany.

These five Democrat strongholds (aggregate population: 40.7 million) have enacted or are expected to impose such limits on the GOP’s federal tax cuts on tips, overtime, and Social Security.

Some of these Left-wing jurisdictions are going even further. They are picking the pockets of jobmakers by ignoring various pro-growth aspects in the One Big, Beautiful Tax Cut. So, federal tax limitations for research and development, instant write-offs of capital purchases, qualified small business stock exclusions, and other commercial activity would remain fully taxable at the state (or district) level.

This Democrat-fueled government greed should speed the march of CEOs toward Florida, Tennessee, Texas, and other low-tax states.

“It’s disheartening that certain blue-state governors are choosing to withhold money from their constituents while decrying the federal government for its efforts to undo years of fiscal mismanagement and economic turmoil,” a Treasury spokesman told me Friday. “While residents of New York, Illinois, and Colorado will continue to see more money in their pockets from higher federal tax refunds, these states have chosen to make tax-filing season more difficult and less fruitful for millions of Americans.”

More work. Less reward. Thank you, Democrats!

“By denying their residents access to these important tax cuts, these governors and legislators are forcing hardworking Americans to shoulder higher state-tax burdens,” Treasury Secretary Scott Bessent declared Wednesday in a statement. “This partisan stonewalling is a direct assault on the very families and workers liberal politicians claim to champion.”

Indeed, Democrats echo each other, like a pandemonium of parrots, as they screech about “affordability!”

Affordability is our watchword in Illinois,” Gov. JB Pritzker squawked. “Colorado is focused on real solutions for affordability,” Polis chirped.

So, at last, Republicans deliver concrete relief to the “affordability crisis” that has become the Democrats’ latest obsession. The Trump/GOP tax cuts will help Americans pay their bills, buy groceries, fill their gas tanks, and maybe even get out of town to pursue happiness. What could be more wonderful?

Rather than celebrate with everyday people, Democrats decrease taxpayers’ additional income and diminish their economic security. For Democrats, making Americans poorer is a bargain compared to the bonanza of denying Trump and Republicans any credit for feeling and easing the people’s pain.

“Blue states have long viewed your promotion and pay increase as reasons to take more from you,” said Grover Norquist, president of Americans for Tax Reform. “Work Saturday, and the government should be paid more. And now, federal income-tax cuts are yet another reason for the state to take more and more of your income.”

Trump and every Republican should make these sadistic Democrats famous and hammer them mercilessly until they let every American who is entitled to these tax cuts savor them in full.

Deroy Murdock is a Manhattan-based Fox News contributor and a contributing editor with The American Spectator.

Reprinted with permission from The Daily Signal by Deroy Murdock.

The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.

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Max
Max
5 months ago

Hopefully, those workers that are getting the shaft will remember at election time who did them in at the state level. Only time will tell.

Nan
Nan
5 months ago

The continuing Democrat Mantra. Never really let the people get ahead, or have a real break, and blame someone else. I agree that what these state governments, and governors, are doing should be published everywhere in every state, city, town, and village in the USA. Such oppressive policies should be opposed on every level.

Big Dog Louie
Big Dog Louie
5 months ago

As a wise man once said” If there is an idiot in power, it means those who elected him are well represented”…

Gary
Gary
5 months ago

I wish the voters would take off there blindfolds and see the tricks these law makers burden the worker

Philip Seth Hammersley
Philip Seth Hammersley
5 months ago

Don’t you realize that the “gubmint” needs your money more than you do? After all, there are a lot of illegal immigrants and homeless bums who lack all they WANT!

irene
irene
5 months ago

Trump derangement syndrome at its best. The Dems are so blinded with hate that they can’t see straight anymore. Yet, they are actually digging their own graves by doing this. I can’t wait for it all to backfire.

Ron
Ron
5 months ago

I saw this coming in Illinois about 6 years ago. Sure am glad I got out when I did!

SAMSON
SAMSON
5 months ago

Well do you think these stupid people who still support Democrats will wake up now? Probably not, because even something like this will not wake them up you need something more devastating to happen to them and even then they will still be hardened like pharaoh. Wake up all you Democrat supporters!

2ruthBTold
2ruthBTold
5 months ago

I said it from the beginning. What the Trump administration does to cut taxes and increase disposable income the Marxist Socialist Democrats will take away. They do not want success in America under a Conservative administration, it would prove the idiocy of their own policies.

Bill Walters
Bill Walters
5 months ago

Mental illness is rampant in these state governments. TDS to the extreme by sacrificing their constituents on the altar of a misguided and flawed ideology. I came up in a household of staunch Democratic Party parents and grandparents, who today would not recognize their party. If ever there was an example of “Cut off your nose to spite your face”, this it. I don’t say this lightly, but there are a lot of parallels between the Democratic Party and the communists, power at any cost. Fortunately, Reagan came into my life

usmc7
usmc7
5 months ago

Democrats are the most evil people on earth.

John
John
5 months ago

This just confirms that the Socialist Democratic Party doesn’t care about the true American taxpayers, all they care about is how they can steal and destroy our country!! Then you have to ask yourselves why aren’t these individuals that are having their money stolen by the corrupt Socialist Democratic Party are not standing up to them!!

CLIFF GERACI
CLIFF GERACI
5 months ago

…..and yet, election after election the sheeple continue to vote Democrat. 75M saw the disastrous policies of the Biden administration and voted for more of the same or worse with Harris. Conservatives, this not just a battle to save America, It’s an ongoing war!!! FIGHT! FIGHT! FIGHT!

Midnight Rider
Midnight Rider
5 months ago

Voters in these blue states are so easily misled by media and fickle it’s doubtful they will ever wake up to the Democrats real purpose. Take your money. Spend on useless projects. Then YOU Live on whatever meager means are left.

Glenn Lego
Glenn Lego
5 months ago

Illinois has raised the taxes on gasoline so much that any reduction in the price of gasoline is not going to benefit consumers. Fortunately people who live close to neighboring states can get their gasoline from those places.

Theresa Coughlin
Theresa Coughlin
5 months ago

democrat party policies are the reason why blue states like NY (full disclosure: my home state) are unaffordable. Then the politicians running these blue states are shocked when people leave.

TPS
TPS
5 months ago

Hey, if they keep voting for these people than they are getting what they deserve. JMO

Thinking
Thinking
5 months ago

The democrats haven’t understood why they lost the election. The people didn’t like their policies. The democrats are not for the people but for themselves. They didn’t like President Trump finding waste and fraud in US Aid overseas, in Soc Sec, Medicaid. Why? Because the senators and representativeness on the democrat side were all profiting from that fraud. President Trump is for the people, all people. He did what he promised and the blue states can’t have that so they oppose him at every turn. One state won’t allow tax free overtime, the other tax on tips and the third tax free Soc. Sec. The democrats oppose America by obstructing president Trump at every turn. We had a free for all under Biden, an economy that plummeted, inflation that roared upwards for years, letting in millions and thousands millions of foreigners without being vetted or even checked if they were healthy. Gang members from MS 13 and Tren de Aragua to ISIS and Chinese spies, to Taliban, all were allowed in. President Trump is deporting them all because the people voted for that. Only the democrats hired paid demonstrators, set up snitch lines to rat out ICE agents to obstruct that deportation. Now we find ISIS cartels in this country have formed cells to blow up ICE facilities and ICE agents. The democrats are allowing this killing to occur from the day they let these illegals into this country. This taxing by the blue states governors is another way of undermining the citizens of this country. Because we have to go we are an obstruction to the democrats, to their vision of a communist America. They don’t want any thinking freedom loving, constitutional patriot. They need the millions of criminals and sex offenders and terrorists they flew into this country and step across the border with no papers. They think they can hold power over them. They are sadly mistaken. They will bring them down and rule America. The Muslims will rule America one day in the not too distant future. Only president Donald Trump can stop that. I hope the citizens of this country see that, how evil the democrats are when, they go to the voting booth next year. The democrats only care about the democrat leadership. The citizens are secondary if not third after the illegals.

Stephen Russell
Stephen Russell
5 months ago

What the Dems do & they wonder why are so Hated since all they use is TDS

Robert Mallory
Robert Mallory
5 months ago

What in the name of sanity does it take for people to see that the Democrats are not their friends?

Sean Richman
Sean Richman
5 months ago

I believe this in Illinois.The filthy rich here have no idea what it means to budget and the filthy rich are democrats.As long as they keep voting for that cult,Illinois will keep working towards being a third world state.The working class in this state doesn’t have a chance with all of the freeloaders and they keep inviting more.IT’S TIME FOR A PURGE AND NOT ONLY POLITICIANS.

Tammy Sikes
Tammy Sikes
5 months ago

You get what you voted for!

Mark Lancaster
Mark Lancaster
5 months ago

Gee, who could have seen this coming?

k burd
k burd
5 months ago

more dem. progress to ruin usa

Nancy
Nancy
5 months ago

What is Calufornia doing to keep California’s Seniors, Veterans from benefiting from BBB tax cuts

BEA
BEA
5 months ago

The democrats will always take the American taxpayers money every chance they get. The Dem politicians are always self-serving; how else did Elizabeth Warren get $12,000,000? We should never allow these cheats to remain in office 20, 30, 40 years to get so rich from the sweat off the backs of America’s workers…………..

Cher
Cher
5 months ago

Amen!!! Down with Dem plans! How DARE THEY think OUR $$$ is THEIRS!!! So much for their ‘New Vote-getter’ being ‘affordability’. Everything they label is actually THE OPPOSITE of the name! Dems are claiming ‘affordability’ as their ‘new policy’, while TAKING AWAY from their Taxpayers the Trump Taxcuts!!! in THEIR State??? They are ALWAYS ABOUT ‘UN-affordability’, just like the Obamacare mess, just like ‘Affordable Housing’ that ISN’T Affordable, and has RUINED the National Housing Market for EVERYONE (probably except them with their many mansions)!!! I hope EVERYONE is WATCHING THIS!!!

Kjhanover
Kjhanover
5 months ago

Aren’t they doing same thing with school taxes? They figure people don’t know these states are still getting their federal funding, just without the DOE?

RobertLK
RobertLK
5 months ago

All my friends who had union jobs and were the biggest supporters of the democrats can’t believe how the democrat party has become so twisted and against the working class. Since Obama they all have become Republicans! The democrats are hurting the working class especially in the Blue States. Hopefully people will wake up in those states and go Republican.

paul
paul
5 months ago

politicians are traitors thieves you know its a good thing we have been sold out to china and islam both will kill us and the politicians that seems to be the only way to get rid of them

Larry
Larry
5 months ago

When will American’s wake up and run the liberal people out of this country?

James
James
5 months ago

The Democrat’s: the tax and spend party.

TommyD
TommyD
5 months ago

Tax the working people and give it away to those that don’t/won’t work. Sure, there are some people that need assistance and they should get legitimately needed assistance. But soooo many people do not NEED assistance, they are scammers. Generational welfare in NYC is insane. The kids of many people on the system simply become a part. of the system. You’d be amazed at how many young, healthy people are on benefits due to “diagnosed” ADHD and similar “conditions’ that are usually BS, or not severe enough that the person should not be working at all. I worked closely with this situation in NYC for many years and have seen it all. There are many people that have nothing wrong with them, other than that they are lazy, and they are milking the system. Go to low income areas and you will see apparently healthy men, sitting around, smoking cigarettes and weed, while drinking a 40, since the police can’t really take action anymore, while wearing expensive sneakers and having modern cell phones. BTW, why do the taxpayers pay for people on “programs” to have cell phones? These are not 911 phones, they are functioning mobile phones, and other people are paying for many of them. New sneakers, plenty of bling, mani-pedi’s, food stamps, free or extremely low rent, low utilities and internet, all while bench pressing 250 lbs. and playing sports in the open, all while never being questioned about work. Yeah, keep taking money from the people that are working. Soon enough even more people will simply hop on the system, which dems want. With the advent of technology and the internet, places like NY are going to see a bigger mass exodus than they ever imagined and the “rich” are going to flip them the bird on their way out of the state……….. with their billions of dollars in tax revenue.

Sam
Sam
5 months ago

Just WHO TF keeps voting for these dummkopfs?! Trump Derangement Syndrome is alive and well and running RAMPANT across the USA!

S.Z.
S.Z.
5 months ago

The New Communist Party of America isn’t about to give up any chance to increase their socialist agenda. Give me, give me, give me. They’ve already proven over and over that the money ends up in their pockets through massive corruption.

Marty
Marty
5 months ago

This is a good article and there are many great comments underneath it.

Jimmy Page
Jimmy Page
5 months ago

DISGUSTING! … JFK is rolling over in his grave! IF you are a Demarat today… you are either a “Tribalist”… or a lobotomized globalist!

Bacon Nivison
Bacon Nivison
5 months ago

The Rats will never give up on destroying America.

joepublic
joepublic
5 months ago

No sympathy for these Blue State voters. You’re getting exactly what you voted for.
Someday you may wake up, but I’m not holding my breath.

Bill
Bill
5 months ago

Have not seen the new tax law but if 100% of tips and overtime are exempt then iI agree with the states. As a taxpayer I’m tried of supporting others just so a party can get their vote. Those making $100,000 in tips or overtime should not be supported by salaried workers who receive no overtime or tips.

caseyp
caseyp
5 months ago

It’s simple. When paying a bill, give cash to the server or whomever else. Although I live in the free state of Texas, that is what I do.

Valerie Edwards
Valerie Edwards
5 months ago

SOOOOO glad that I live in a red state!!! I hope that these blue states get exactly what they want (and deserve)! I wonder who they will blame this segregating movement on? Just don’t bring your idiot ideas to the red states when you go broke! Stay at home and keep your people in modern day slavery that is a signature move of the Demoncrats!

Space
Space
5 months ago

The Democrat Communists don’t believe you should own anything.

Cookiepress
Cookiepress
5 months ago

Worked in the restaurant business as a bartender and bar manager for many years and at that time there was no tax on tips. I hand the server a cash tip now and never put it on my CC.

Dr. George Rivera Jr
Dr. George Rivera Jr
5 months ago

So . . . when the IRS is disbanded and the ERS takes over, will Blue states raise their taxes to wash-out no more Federal Income Tax? Just asking!

Carl
Carl
5 months ago

I hope the voters will wake up and realize what is happening.

Marty
Marty
5 months ago

This article and the comments need to be seen by liberals. To do that copy the link and post it on Facebook or go to a leftist article that’s similar and post it in the comments. Maybe one in a thousand liberals will read the information and vote better.

Alex Coalson
Alex Coalson
5 months ago

The democrat party is made up of people who hate America and everything it stands for. Anyone who votes for ANY democrat is voting for the destruction of the United States of America.

papaYEC
papaYEC
5 months ago

The “Democratic” Party is all about slavery and 100% government-dependence. They always have been.

papaYEC
papaYEC
5 months ago

This despicable treachery is 100%-perpetrated by the COMMUNIST DEMOCRATIC PARTY, and this fact needs to be LOUDLY and PERSISTENTLY broadcast throughout the country!

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