Kathy Hochul Just Did a Major U-Turn on Taxing Tips

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Democrats have been hammering affordability for a while now. Of course, when they say "affordability," what they really mean is "we'll raise taxes to give certain voters free stuff," usually off the backs of the rich and middle class. In New York City, Zohran Mamdani ran on such a platform, including a "universal childcare" plan that'll put Minnesota's billions of dollars of fraud to shame.

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New York Governor Kathy Hochul threw her weight behind that universal childcare proposal, arguing it's not just pro-family, and pro-affordability, but "pro-business" too.

"Employers in New York are really going to benefit when their own employees don’t have to stress about who’s taking care of their children. I think that’s going to give real competitive advantages to our businesses as well,” Hochul said. But when it comes to actual, real pro-business and pro-worker policies, Hochul is singing a different tune.

On December 30, Townhall reported that Hochul was one of a handful of Democratic governors who were putting the screws to service industry workers in the state by refusing to comply with President Trump's "no tax on tips" plan, one that would let workers keep more of their hard-earned money.

According to The New York Post, Hochul and the New York legislature didn't extend that policy to the state's income tax, a move tha angered service industry workers and restaurant owners.

Jackie Puttre, a manager at P. McDaid's Irish Pub in Midtown, blasted Hochul over it.

“Their hands are in everything and finally they’re doing some good and they passed the bill and now the state comes and screws you. It’s like, what are we doing? Just leave it to Kathy Hochul to do that,” she said.

And bartender Hannah Teal said she only brought home $40,000 in 2024 after the state took its share of taxes. Teal noted that she'd take home at least $3,000 more if it weren't for state taxes, and told The Post she'd be "ecstatic" if Hochul reversed course.

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Now it appears Teal got her wish, and following some major backlash, Hochul is open to no state tax on tips.

According to The New York Post, Hochul released a statement on New Year's Day backpedaling on her previous position.

In that statement, Hochul said she'll propose a policy that will eliminate state taxes on tips up to $25,000.

"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,” Hochul wrote in the statement.

The pause on tips will be part of Hochul's state budget proposal, which will be made public later this month. California and Illinois were two other states that said no to President Trump's plan, because a) Democrats love our tax dollars and b) they could not let President Trump have a win, even if it means harming workers in their state.

But Hochul is facing reelection this year, and this may be a sign she's nervous about losing, even if J.B. Pritzker of Illinois isn't making that same calculation, despite running for his third term this fall. California Governor Gavin Newsom is term-limited, so he doesn't care.

Bruce Blakeman, who is running to replace Hochul and the current Executive of Nassau County, took a victory lap over Hochul's backpedal.

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"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," he told The Post.

Assemblyman Mike Durso, a Nassau Republican, had introduced legislation to eliminate the tax on tips last year, and he called on Hochul to not wait and put this policy in the budget, which likely won't pass before April 1.

“We don’t need to add stuff to it, attach stuff to it that’s going to make it stink. Let’s just get it done,” Durso said. "This is plain and simple. It’s going to help working-class people."

We thought Democrats were the party of the working-class, but it seems they're not, especially when taxes are involved.

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