{"id":82352,"date":"2025-12-28T04:38:25","date_gmt":"2025-12-28T04:38:25","guid":{"rendered":"https:\/\/www.newsbeep.com\/us-ny\/82352\/"},"modified":"2025-12-28T04:38:25","modified_gmt":"2025-12-28T04:38:25","slug":"hochul-wont-serve-up-trumps-no-tax-on-tips-policy-ticking-off-ny-restaurant-workers","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/us-ny\/82352\/","title":{"rendered":"Hochul won&#8217;t serve up Trump&#8217;s &#8216;no tax on tips&#8217; policy, ticking off NY restaurant workers"},"content":{"rendered":"<p>These Scrooges refuse to act on a hot tip.<\/p>\n<p>Gov. Kathy Hochul and Democratic New York lawmakers <a href=\"https:\/\/nypost.com\/2025\/12\/26\/us-news\/here-are-the-blue-states-blocking-trumps-popular-tax-cut-provisions\/\" rel=\"nofollow noopener\" target=\"_blank\">haven\u2019t extended President Trump\u2019s \u201cno tax on tips\u201d policy<\/a> to state income taxes \u2014 hitting bartenders and restaurant workers in the pocketbook all while preaching affordability.<\/p>\n<p>The inaction galled Rion Gallagher, 30, a bartender at The Blasket, an Irish pub in Midtown, on Friday.<\/p>\n<p>\u201cScrew her,\u201d Gallagher said about Hochul.<\/p>\n<p>Zoe Kalodimos, 30, a waitress at Embassy Diner in Bethpage, says it\u2019s \u201cdisgraceful\u201d that Hochul hasn\u2019t extended President Trump\u2019s \u201cno tax on tips\u201d policy. Dennis A. Clark<\/p>\n<p>\u201cIf we weren\u2019t taxed on our tips, we\u2019d be able to save more, we\u2019d enjoy life a little more, maybe we wouldn\u2019t have to pick up that extra shift.\u201d<\/p>\n<p>The \u201cno tax on tips\u201d policy, along with a related deduction for overtime, was a key worker-friendly provision of Trump\u2019s \u201cOne Big Beautiful Bill\u201d narrowly passed by Republicans this year.<\/p>\n<p>Treasury Department officials extended the federal tax break for <a href=\"https:\/\/nypost.com\/2025\/09\/01\/us-news\/here-are-the-list-of-jobs-that-qualify-for-president-trumps-no-tax-on-tips\/\" rel=\"nofollow noopener\" target=\"_blank\">nearly 70 jobs and professions<\/a>, from taxi drivers to golf caddies (but not <a href=\"https:\/\/nypost.com\/2025\/12\/08\/us-news\/irs-agents-may-have-to-watch-onlyfans-because-of-jiggle-room-over-trumps-no-tax-on-tips\/\" rel=\"nofollow noopener\" target=\"_blank\">pornographic OnlyFans creators<\/a>) \u2014 but the obvious beneficiaries were food and beverage service workers often dependent on tips.<\/p>\n<p>Qualified service workers can now deduct up to $12,500 of tip income a year on their federal taxes, while hourly workers can do the same for $12,500 of overtime pay. The break jumps to $25,000 in both cases if filing as a married couple, and is effective for tax years 2025-28.<\/p>\n<p>But while many states either proactively or automatically matched the cuts, several others held out against extending the deduction, including New York \u2014 to the dismay of service industry workers.<\/p>\n<p>\u201cIt\u2019s disgraceful. People live off of tips,\u201d said Zoe Kalodimos, 30, a waitress at Embassy Diner in Bethpage, Long Island, who said she helps out at home as the eldest of five siblings.<\/p>\n<p>\u201cFor [Hochul] to do that is just, it\u2019s disheartening. It\u2019s upsetting,\u201d said Kalodimos, who takes home $3 on an $8 gratuity.<\/p>\n<p>Kalodimos said she loses roughly $1,000 a month on taxes from tips \u2014 which she told The Post are hard-earned for going above and beyond while serving \u201chundreds\u201d of customers per shift.<\/p>\n<p>\u201cIt\u2019s like losing money. So it\u2019s hard, especially when everything\u2019s so expensive in life right now. That\u2019s my livelihood, that\u2019s how I eat and feed my family.\u201d<\/p>\n<p>Hannah Teal, 33, a bartender at George and Jack\u2019s Tap Room in Williamsburg, said she only brought home $40,000 after taxes last year. Kevin C Downs forThe New York Post<\/p>\n<p>Jackie Puttre, a manager at P. McDaid\u2019s Irish Pub in Midtown for a couple of years and a server for 37, also had some choice words for state lawmakers.<\/p>\n<p>\u201cTheir hands are in everything and finally they\u2019re doing some good and they passed the bill and now the state comes and screws you. It\u2019s like, what are we doing? Just leave it to Kathy Hochul to do that,\u201d said Puttre, a Trump supporter.<\/p>\n<p>\u201cThanks for nothing,\u201d she told Hochul.<\/p>\n<p>Several servers coyly lamented the declining use of cash, which used to provide an ignorance-is-bliss workaround to getting their tips taxed. <\/p>\n<p>\u201cI get most tips from credit cards, so that means everything is getting taxed,\u201d said David Aju, a server at Anatoly 56 Greek Taverna in Midtown.<\/p>\n<p>\u201cHonestly, if my check comes out good, but then they take out a lot of taxes, it\u2019s bad for us.\u201d<\/p>\n<p>Hannah Teal, 33, who tends bar at George and Jack\u2019s Tap Room in Williamsburg, said she only brought home $40,000 after taxes last year.<\/p>\n<p>\u201cScrew her,\u201d one restaurant worker said about Gov.Hochul\u2019s inaction on the policy. Susan Watts\/Office of Governor Kathy Hochul<\/p>\n<p>\u201cIt sucks to be taxed! That\u2019s why we love cash tips!\u201d Teal joked, noting she could\u2019ve taken home $3,000 more if not for state taxes, adding she\u2019d be \u201cecstatic\u201d if Hochul reversed course.<\/p>\n<p>\u201cHow do you survive on $40,000 in New York City? You don\u2019t!\u201d<\/p>\n<p>\u201cAffordability\u201d has become a recent rallying cry for Democrats, especially after the meteoric rise of democratic socialist Mayor-elect Zohran Mamdani.<\/p>\n<p>Hochul herself jumped onto the <a href=\"https:\/\/nypost.com\/2025\/01\/14\/us-news\/hochul-plans-to-bet-big-on-affordability-in-state-of-the-state-speech-but-critics-warn-policies-may-hit-ny-pocketbooks\/\" rel=\"nofollow noopener\" target=\"_blank\">affordability bandwagon<\/a>, doling out \u201cinflation refund checks\u201d up to $400 and pushing a child tax credit \u2014 even as she backed a <a href=\"https:\/\/nypost.com\/2025\/01\/05\/us-news\/hochuls-9-nyc-congestion-tolls-set-to-roll-out-jan-5\/\" rel=\"nofollow noopener\" target=\"_blank\">$9 congestion toll<\/a> for cars entering Manhattan and other measures hitting New Yorkers in the wallet.<\/p>\n<p>She notably did not push to match Trump\u2019s tip and overtime deductions, despite state Sen. George Borrello (R-Jamestown) proposing bills to do so for New Yorker taxpayers. <\/p>\n<p>New York pols have balked at giving up more than $1 billion in revenue from tips and overtime, Reuters <a href=\"https:\/\/tax.thomsonreuters.com\/blog\/state-decoupling-from-federal-tax-provisions\/#three-paths-forward\" target=\"_blank\" rel=\"noopener nofollow\">first reported<\/a>. A spokesperson for Hochul disputed that report Friday and said the state was still evaluating the issue.<\/p>\n<p>The policy was a crucial part of Trump\u2019s \u201cOne Big Beautiful Bill,\u201d which also has deductions for overtime pay. Gregory P. Mango<\/p>\n<p>Whether Mamdani as mayor will seek relief for tip-reliant workers remains to be seen.<\/p>\n<p>A spokesperson for the city\u2019s Department of Finance didn\u2019t comment on whether local income taxes for such workers could be changed.<\/p>\n<p>\u201cConversations are ongoing and will be decided upon in the new year,\u201d the spokesperson said.<\/p>\n<p>Tatiana Cruz, 25, a bartender at Teddy\u2019s in Williamsburg, said getting taxed is always annoying as it cuts into the $400 in tips she makes on a good night.<\/p>\n<p>But she said making better wages would be better than relying on tips.<\/p>\n<p>\u201cI think every restaurant should pay servers livable wages, so we don\u2019t have to depend on tips,\u201d Cruz said.<\/p>\n<p>\t\t\t\t\t\t\tStart your day with all you need to know\t\t\t\t\t\t<\/p>\n<p class=\"inline-module__cta\">\n\t\t\t\t\t\t\tMorning Report delivers the latest news, videos, photos and more.\t\t\t\t\t\t<\/p>\n<p>\t\t\t\t\t\tThanks for signing up!\n\t\t\t\t<\/p>\n<p>John Winterman, owner of Francie restaurant in Williamsburg, argued if eateries got tax breaks they\u2019d be able to better pay their workers.<\/p>\n<p>\u201cIf [Hochul\u2019s] not working to help restaurants get the tax breaks they need, it\u2019s an uphill battle for us,\u201d Winterman said.<\/p>\n<p>Wait staff will definitely move out of New York City if the state doesn\u2019t match the tip no-tax, said Sammy Musovic, owner of Sojourn Social on the Upper East Side.<\/p>\n<p>\u201cI was really looking forward to that tip credit,\u201d he said, before criticizing Hochul. \u201cShe\u2019s not thinking of small businesses when she\u2019s making these decisions.<\/p>\n<p>\u201cEighty percent of [servers\u2019] income comes from tips \u2014 that would have been a big boost for them. It would have helped us to retain employees.\u201d<\/p>\n<p>The foot-dragging prompted Trump\u2019s Treasury Secretary Scott Bessent to caustically accuse New York and other liberal states of \u201cpolitical obstructionism\u201d by deliberately blocking residents from reaping the benefit.<\/p>\n<p>\u201cThis partisan stonewalling is a direct assault on the very families and workers liberal politicians claim to champion,\u201d he said in a statement.<\/p>\n<p>Sensing blood in the water, Nassau County executive and Republican gubernatorial candidate Bruce Blakeman argued Hochul had yet again gouged New Yorkers.<\/p>\n<p>\u201cKathy Hochul is sticking it to the service industry by blocking real tax relief on tips and overtime \u2013 costing servers up to $3,000 a year,\u201d Blakeman told the Post.<\/p>\n<p>A spokesperson for Hochul appeared to leave the door open to stop taxing tips and overtime. <\/p>\n<p>\u201cWe will continue finding ways to put money back in New Yorkers\u2019 pockets and will evaluate federal changes in the context of the upcoming budget, just like red and blue states across the country,\u201d a spokesperson for the governor said.<\/p>\n<p>\u2014 Additional reporting by Jeanette Settembre, Ella Morrison and Hannah Fierick<\/p>\n","protected":false},"excerpt":{"rendered":"These Scrooges refuse to act on a hot tip. Gov. Kathy Hochul and Democratic New York lawmakers haven\u2019t&hellip;\n","protected":false},"author":2,"featured_media":82353,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[153,426,57,9,11,10,49,51,50,2780,32708,58],"class_list":{"0":"post-82352","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-new-york","8":"tag-donald-trump","9":"tag-kathy-hochul","10":"tag-metro","11":"tag-new-york","12":"tag-new-york-headlines","13":"tag-new-york-news","14":"tag-new-york-state","15":"tag-new-york-state-headlines","16":"tag-new-york-state-news","17":"tag-taxes","18":"tag-tips","19":"tag-us-news"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/82352","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/comments?post=82352"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/posts\/82352\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media\/82353"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/media?parent=82352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/categories?post=82352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/us-ny\/wp-json\/wp\/v2\/tags?post=82352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}