🚨 DEM VOTERS GO WILD! 😱 They’re FLIPPING OUT as Trump’s “No Tax on Tips” promise gets BLOCKED by their own governors – proving HE WAS RIGHT all along! From New York to Colorado, service workers are getting SCREWED while Dems play politics. Wait till you see who’s keeping YOUR money! Tap now to uncover the betrayal!

President Donald Trump’s signature “No Tax on Tips” policy, a cornerstone of his One Big Beautiful Bill Act (OBBB) signed into law on July 4, 2025, has hit a roadblock in several Democratic-led states, igniting fury among service industry workers and fueling claims that Trump’s warnings about political obstructionism were prescient. The policy, which eliminates federal income taxes on tips for workers in hospitality and other tip-reliant fields, was hailed as a win for low- and middle-income Americans. However, governors in states like New York, Illinois, Colorado, and Maine, along with the District of Columbia, have refused to align state tax codes with the federal exemption, prompting accusations of partisan sabotage and leaving tipped workers facing higher state tax burdens.

The “No Tax on Tips” provision, first championed by Trump during a June 2024 campaign rally in Las Vegas, gained bipartisan traction, with Nevada’s Democratic Sens. Jacky Rosen and Catherine Cortez Masto co-sponsoring related legislation. The policy was formalized in the OBBB, which also includes exemptions for overtime pay and a new deduction for seniors on Social Security. Structured as a 100% federal income tax deduction for tips (capped at $25,000 for workers earning under $160,000 annually), it was projected to save millions of service workers – bartenders, servers, and hairdressers – thousands of dollars each year. The Joint Committee on Taxation estimated a $40 billion federal deficit impact over three years, a relatively modest cost compared to other OBBB provisions like the $120 billion overtime tax break.

While the federal government no longer taxes tips, states are not obligated to conform their tax codes to federal changes. Democratic governors in several blue states have opted to maintain state income taxes on tips, citing budgetary concerns and skepticism about the policy’s long-term economic benefits. In New York, Gov. Kathy Hochul’s administration has indicated that conforming to the federal exemption would cost the state hundreds of millions annually, straining funds for education and healthcare. Illinois Gov. JB Pritzker, a vocal Trump critic, pointed to the OBBB’s increased state burdens, such as higher costs for the Supplemental Nutrition Assistance Program, as a reason to reject certain tax breaks. Colorado Gov. Jared Polis, while supportive of other OBBB elements like tax-credit scholarships, has hesitated on the tips provision, with his office noting the need to balance revenue for public services.

The resistance has sparked a backlash, particularly among service workers who expected immediate relief. In New York, where the hospitality industry employs over 900,000 people, restaurant servers have taken to social media to express frustration. A viral TikTok video from a Manhattan bartender, viewed over 2 million times, showed her calculating a $1,200 state tax hit on her 2025 tips, despite the federal exemption. “I voted blue, but this feels like a slap in the face,” she said, echoing sentiments shared on platforms like X, where hashtags like #NoTaxOnTips and #DemGovernorsExposed have trended. Posts on X, including one from user @VeBo1991 on December 28, claimed Democratic governors were “refusing to implement” the policy, leaving workers “furious and disheartened.” Another post by @MonBreeden listed the non-compliant states, garnering thousands of reposts.

Treasury Secretary Scott Bessent has been a vocal critic of the holdout states, calling their stance “a blatant act of political obstructionism” in a December 10 statement to Fox News. “This is a direct assault on the very families and workers liberal politicians claim to champion,” Bessent said, noting that states like New York, Illinois, and Colorado are “deliberately blocking their own residents” from benefits. He doubled down on X, comparing governors Hochul, Pritzker, and Polis to “the Grinches Who Stole Christmas” and warning that their “Scrooge-like tendencies” would rob workers of deserved relief. Bessent hinted at potential federal pressure, such as withholding certain grants tied to tax administration, though no concrete actions have been announced.

The issue has also reignited partisan tensions. Trump, who called out Vice President Kamala Harris for “copying” his tips policy during the 2024 campaign, has framed the governors’ resistance as proof of Democratic hypocrisy. In a December 20 speech in North Carolina, he highlighted a bartender saving $5,000 annually due to the federal exemption, contrasting her story with “blue state Grinches” denying similar wins. The Trump campaign’s rapid response team amplified the narrative, with posts like one from @RapidResponse47 praising the policy’s impact on the “American Dream.”

Democratic leaders have defended their positions. A spokesperson for Hochul told Fox News that Trump’s broader economic policies, including tariffs, have driven up consumer costs, necessitating fiscal caution. Pritzker, speaking at a December event in Illinois, argued that decoupling from certain OBBB provisions protects funding for programs like homelessness grants. Maine Gov. Janet Mills’ office cited similar budget constraints, while the District of Columbia’s leadership pointed to unique fiscal pressures as a non-state entity. Colorado’s Polis, seen as more moderate, has faced criticism from progressive groups for even considering parts of the OBBB, complicating his stance on the tips issue.

Labor advocates and economists have mixed views. The Culinary Workers Union in Nevada, representing 60,000 hospitality workers, credited Sens. Rosen and Cortez Masto for pushing the policy but expressed concerns about its temporary nature, set to expire in 2028. One Fair Wage, an advocacy group for service workers, called the exemption “moderate relief” but argued it distracts from raising the federal subminimum wage of $2.13 for tipped workers. Tax policy experts, like Jared Walczak of the Tax Foundation, noted that while the policy benefits some workers, it excludes many low-wage non-tipped employees and could incentivize employers to shift wages to tips for tax savings, potentially undermining wage growth.

Public reaction has been polarized. A December 2025 Rasmussen Reports poll found 65% of voters support the “No Tax on Tips” policy, with 72% of independents in favor. However, Democratic voters are split, with 48% supporting state conformity and 42% backing their governors’ caution. In tipped-heavy states like Nevada, where 20% of the workforce relies on hospitality, local restaurant associations report workers inquiring about relocating to conforming states like Arizona, where Gov. Katie Hobbs has signaled openness to adopting the exemption.

The standoff has drawn comparisons to past tax policy disputes, such as state resistance to Trump’s 2017 tax cuts. Analysts suggest the governors’ decisions reflect both fiscal pragmatism and political posturing, with some Democrats wary of giving Trump a legislative win. Conversely, Republicans have seized the opportunity to portray Democrats as out of touch with working-class voters, a narrative bolstered by conservative media outlets like the Daily Caller and Newsmax.

As the 2026 midterms approach, the issue could shape electoral dynamics, particularly in swing states. Nevada Democrats, like Rep. Steven Horsford, have tried to thread the needle, supporting the tips exemption but criticizing the OBBB’s Medicaid cuts, which a government analysis predicts will strip insurance from over 10 million Americans. Horsford’s failed amendment to make the tips policy permanent underscored Democratic concerns about its temporary status.

For now, the resistance from Democratic governors has left tipped workers in non-conforming states caught in the crossfire. In Illinois, a server interviewed by ABC News estimated losing $800 annually to state taxes, despite federal relief. In New York, restaurant owners report growing employee frustration, with some considering union-led protests. The Treasury Department’s threats of “public shaming” or grant restrictions have yet to materialize, but Bessent’s rhetoric suggests the administration will keep pressure on.

The saga underscores broader tensions in American politics: balancing worker relief with fiscal responsibility, navigating federal-state divides, and addressing the economic realities of service industries. Whether the holdout states relent or the issue becomes a 2026 campaign flashpoint remains to be seen. For now, Trump’s claim of being “right” about Democratic obstructionism has found a receptive audience among disgruntled workers, ensuring the debate stays heated.