Here are the blue states ‘blocking’ Trump’s popular tax cut provisions
By Josh Christenson
Published Dec. 26, 2025, 4:07 p.m. ET
WASHINGTON — Just eight states are on track to allow their residents to cash in fully on popular tax cuts from President Trump’s marquee legislation in 2026, experts told The Post, with several blue states unwilling to give workers an additional break.
The One Big Beautiful Bill Act exempted federal taxes on tipped wages and overtime pay, but hard-working residents will still have to pay state taxes on that income — unless local elected leaders step up.
Democratic strongholds like New York, Illinois and California have so far declined to extend state-level tax breaks, 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. 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.
Tax experts rejected the cabinet official’s claim that Colorado is snubbing the tax breaks, noting the state has what’s known as “rolling conformity” that aligns the Centennial State’s code with the Internal Revenue Code.
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https://nypost.com/2025/12/26/us-news/here-are-the-blue-states-blocking-trumps-popular-tax-cut-provisions/
