So the Democrat Party’s strategy is to now copy President Trump?
New York Governor Kathy Hochul is now pushing a “no tax on tips” proposal—an idea conservatives say was pioneered and popularized by President Donald Trump.
Hochul’s administration said Thursday that the plan will be folded into her fiscal year 2027 executive budget. Under the proposal, tipped workers could exclude as much as $25,000 in earnings from New York state income taxes for the 2026 tax year.
The announcement comes as Hochul prepares for her reelection campaign later this year.
“I’m kicking off the new year with a proposal to eliminate state income tax on tips, continuing my efforts to make New York more affordable for hardworking New Yorkers,” Hochul said in a statement.
Her administration claims its various tax relief measures now total more than $9 billion since she became governor.
Trump Led. Democrats Followed.
Long before Democrats embraced the idea, President Trump made “no tax on tips” a central part of his 2024 campaign. He highlighted the proposal repeatedly while campaigning in Nevada, where millions of Americans depend on service-industry jobs for their livelihood.
The proposal quickly gained traction with voters—and even drew reluctant support from Democrats. Former Vice President Kamala Harris, who ran against Trump, eventually voiced support for the concept after it proved popular with working Americans.
Republicans didn’t just talk about the idea—they passed it into law.
GOP Turned Trump’s Idea Into Law
Last year, Republicans passed President Trump’s major GOP policy package, which included a federal “no tax on tips” provision.
Under the law:
- Tipped workers earning up to $150,000 can deduct up to $25,000 in tipped income
- Joint filers qualify with incomes up to $300,000
- A smaller deduction was also included for overtime pay
Conservatives argue this is a clear example of Trump’s pro-worker economic agenda in action.
White House Previously Slammed Hochul
Before Hochul’s latest announcement, Trump administration officials criticized New York Democrats for refusing to adopt the policy at the state level.
White House Press Secretary Karoline Leavitt accused Hochul and state lawmakers of “hitting bartenders and restaurant workers in the pocketbook” while claiming to care about affordability.
The criticism followed reports that New York had failed to extend Trump’s “no tax on tips” plan to state income taxes—until now.
Election Stakes Rising in New York
Hochul is seeking a second term and faces Nassau County Executive Bruce Blakeman, a Republican who received President Trump’s endorsement after Rep. Elise Stefanik exited the GOP primary.
Recent polling suggests Democrats currently hold an advantage, with a Siena College survey showing Hochul ahead by a wide margin. Still, conservatives say Hochul’s sudden embrace of Trump-backed tax ideas underscores a larger political reality:
Trump’s policies are popular—even with Democrats who once opposed them.