Blue-state Democrats are facing growing outrage for blocking a major tax break that was signed into law by President Donald Trump.
Signed into law in July by Trump, the One Big Beautiful Bill (OBBB) contained a provision exempting service industry workers from having to pay federal taxes on overtime pay and tips starting in 2026.
But according to a Reuters report filed last month, lawmakers in blue states like New York, Illinois, and California are blocking the law, while lawmakers in plenty of other blue states are also preparing to block it.
Responding to this report, which was later reshared by the New York Post, Republican House Speaker Mike Johnson called it “outrageous”:
Most working Americans can anticipate the largest tax refunds in HISTORY this year — but, incredibly, Democrat-controlled states are REFUSING to allow President Trump’s popular No Tax on Tips or Overtime!
IT’S OUTRAGEOUS.
Once again — as they pay lip service to an… https://t.co/pFfO7Gj0Fx
— Speaker Mike Johnson (@SpeakerJohnson) December 29, 2025
“Most working Americans can anticipate the largest tax refunds in HISTORY this year — but, incredibly, Democrat-controlled states are REFUSING to allow President Trump’s popular No Tax on Tips or Overtime!” Johnson tweeted on Monday.
“IT’S OUTRAGEOUS. Once again — as they pay lip service to an ‘affordability’ issue THEY CAUSED — when Republicans give them the opportunity to actually make life more affordable, Democrats turn their backs on the working class,” he added.
According to the Post, this outrage is shared by blue-state workers.
“Screw her,” Rion Gallagher, a bartender in New York City, said to the Post about New York Gov. Kathy Hochul. “If we weren’t taxed on our tips, we’d be able to save more, we’d enjoy life a little more, maybe we wouldn’t have to pick up that extra shift.”
Zoe Kalodimos, a waitress at a Long Island diner, was equally peeved.
“It’s disgraceful,” she told the Post. “People live off of tips. For [Hochul] to do that is just, it’s disheartening. It’s upsetting.”
“It’s like losing money,” she added, noting that she loses about $1,000 a month in earnings because of taxes. “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 my family.”
Jackie Puttre, a pub manager, was also in disbelief.
“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,” she complained to the Post. “It’s like, what are we doing? Just leave it to Kathy Hochul to do that. Thanks for nothing.”
These workers have the support of Treasury Secretary Scott Bessent, who recently posted a tweet excoriating blue-state “Scrooges” like Hochul, among others, for screwing them over.
Thanks to @POTUS, ‘tis the season to be jolly – unless you’re a taxpayer in New York, Colorado, Illinois, or the District of Columbia.
For millions of hardworking Americans, @GovKathyHochul, @GovofCO @jaredpolis, and @GovPritzker are The Grinches Who Stole Christmas.
Courtesy… pic.twitter.com/eVtKYcHc4w
— Treasury Secretary Scott Bessent (@SecScottBessent) December 10, 2025
“Courtesy of their Scrooge-like tendencies, America’s seniors, along with all workers who would benefit from No Tax on Tips and No Tax on Overtime, will be robbed of the tax relief they deserve,” he wrote.
“The Christmas season should be a time of great cheer. But due to the Trump Derangement Syndrome of these Governors and other radical leftists, too many low- and middle-income households will receive nothing but coal in their state tax stockings,” he added.
California is also blocking the law, which comes as little surprise, given that California congressional lawmakers also voted against the OBBB. In voting against the bill, they also voted against making Trump’s 2017 tax cuts permanent. That too will hurt Americans.
Economist Stephen Moore previously told the California Globe that “if we don’t pass this bill, it will be the biggest tax increase in history.”
“Moore, co-founder of Unleash Prosperity Now, and the author of ‘Who’s the Fairest of Them All?: The Truth about Opportunity, Taxes, and Wealth in America,’ warns that if Trump’s ‘One Big Beautiful Bill’ is not passed, every family in America will pay $2,000 to $3,000 more per year in taxes – and that is just for starters,” the Globe reported in May.
Writers and editors can be contacted at [email protected] with feedback, tips, or corrections.
V. Saxena is a staff writer with a decade of experience as a professional writer, and a lifetime of experience as an avid news junkie. He holds a degree in computer technology from Purdue University. Saxena also contributes to BizPac Review.
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