New York Gov. Kathy Hochul Copies One of Trump's Signature Policies

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Democratic New York Gov. Kathy Hochul announced Thursday that she will be following suit with one of President Donald Trump’s signature policy initiatives.

“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 said in a news release.

The governor, who is seeking re-election in November, signed legislation last year lowering the income tax on middle-class taxpayers 0.1 percent and boosting the child tax credit up to $1,000 per child for those under 4, and up to $500 per child for those 4 to 16.

“This latest expansion marked the largest increase in the credit’s history, significantly surpassing the previous maximum of $330 per child,” Hochul’s office said.

No tax on tips, income tax cuts, and an expansion of the child tax credit were all part of the Republicans’ Big Beautiful Bill, which Trump signed into law in July.

Hochul’s no-tax-on-tips provision for the 2027 fiscal year eliminates liability on gratuity income received up to $25,000, matching federal law.

The New York Post reported, “Republicans have whacked blue states like New York, Illinois, and California for not moving to make sure state income taxes were also eliminated starting this year.”

Nassau County Executive Bruce Blakeman, a Republican running to unseat Hochul, responded to her decision, telling the Post, “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 added.

Like Hochul, Democratic 2024 presidential nominee Kamala Harris came out in support of no tax on tips during the campaign after Trump’s proposal proved popular among service industry employees, including in the swing state of Nevada.

The issue was shaping up to be a big one for Hochul’s re-election bid, as multiple restaurant workers expressed anger toward the governor for not following the president’s lead. New York has among the highest taxes in the country.

“It’s disgraceful. People live off of tips,” Zoe Kalodimos, 30, a waitress at Embassy Diner in Bethpage, Long Island, told the New York Post.

“For [Hochul] to do that is just, it’s disheartening. It’s upsetting,” she added.

Kalodimos said she loses up to $1,000 a month in take-home pay due to taxes from tips, and she was looking forward to Trump’s policy applying at the state level, too.

“It’s like losing money,” she said. “So it’s hard, especially when everything’s so expensive in life right now. That’s my livelihood, that’s how I eat and feed myself and my family.”

While Hochul has finally boarded the “no tax on tips” train, she may have reversed course on whether she would support newly sworn-in Mayor Zohran Mamdani raising taxes on the wealthier New York City residents.

Before his election in June, she told reporters, “I have said that I will not raise income taxes on the people of our state. I’m focused on affordability, and raising taxes on anyone does not accomplish that. I’m just making sure that people who create jobs will stay here so we can have good-paying jobs.”

But after Mamdani’s victory in November, Politico reported that Hochul and her advisers had been mulling over how exactly to help fund his grand plans, and one possibility they discussed was raising taxes on higher-income individuals and companies.

New York State already has one of the highest income tax rates in the nation for upper-tier earners at 10.9 percent. The tax rate for middle-class taxpayers, making between approximately $14,000 and $80,000, is 5.5 percent.

Several states, including Florida, Texas, Tennessee, and New Hampshire, have no state income tax at all.

Contributing Journalist

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Randy DeSoto has written more than 3,000 articles for The Western Journal since he began with the company in 2015. He is a graduate of West Point and Regent University School of Law. He is the author of the book "We Hold These Truths" and screenwriter of the political documentary "I Want Your Money."

Birthplace

Harrisburg, Pennsylvania

Nationality

American

Honors/Awards

Graduated dean's list from West Point

Education

United States Military Academy at West Point, Regent University School of Law

Books Written

We Hold These Truths

Professional Memberships

Virginia and Pennsylvania state bars

Location

Phoenix, Arizona

Languages Spoken

English

Topics of Expertise

Politics, Entertainment, Faith

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