Several deep-blue states play Scrooge by blocking Trump's new tax cuts
Just eight states are on track to allow their residents to cash in on popular tax breaks from President Trump’s marquee legislation in 2026, experts told The Post, with several blue states resisting no taxes on tips and overtime provisions, among others.
Democratic strongholds like New York, Illinois and California are declining to incorporate the provisions in their own tax codes, 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. Other 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.
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