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Republicans rip 4 blue states for keeping taxes on tips, overtime after Trump reprieve
By Eric Mack
Published April 16, 2026
Four Democrat-led states that rejected President Donald Trump's policy of no taxes on tips and overtime pay are getting called out by Republicans for going against efforts to increase affordability.
The governors of the three largest Democrat-run states, California, New York and Illinois, are continuing to tax tips and overtime against Trump's One Big Beautiful Bill Act, while Colorado will require taxpayers to report how much is deducted federally so it can be added back for state taxes in future years.
"Gov. Hochul and Albany Democrats believe your money is their money: They are picking the pockets of waitresses, bartenders, and first responders who work overtime just to make ends meet in a state that already has the highest tax burden in the country," Rep. Mike Lawler, R-N.Y., told Fox News Digital.
"No wonder working people and jobs continue to flee New York in record numbers, and we’re consistently among the worst in outmigration every year."
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Democrat Govs. JB Pritzker, Jared Polis, Gavin Newsom and Kathy Hochul were all called out on Tax Day for rejecting President Donald Trump's efforts to address affordability through no tax on tips or overtime. (John J. Kim/Chicago Tribune/Tribune News Service via Getty Images; Michael Nagle/Bloomberg via Getty Images; Gary Miller/FilmMagic via Getty Images Polis: David Paul Morris/Bloomberg)
With "affordability" a key political issue, Republicans countered with a Tax Day narrative against the governors of those four blue states that are facing midterm gubernatorial campaigns, including Hochul, who is running for re-election and California Gov. Gavin Newsom, who terms out this year.
"California Democrats talk a lot about making life more affordable, but when given the chance to let hardworking Californians keep more of what they earn, Gov. Newsom and the state legislature refused to update the state’s tax code," Rep. David Valadao, R-Calif., told Fox News Digital. "No tax on tips or overtime would provide real relief to service workers, first responders, and families across our state, and it’s disappointing to see Sacramento turn its back on them."
Gov. Gavin Newsom speaks at a press conference at San Lorenzo High School as he signs an executive order to expand women's access to capital and wealth-building opportunities on March 18, 2026, in San Lorenzo, Calif. (Tayfun Coskun/Anadolu)
Illinois Republican Party Chair Kathy Salvi says that while Illinois Gov. JB Pritzker is running for re-election in the nation's third-largest blue state, he is really positioning himself for a 2028 presidential campaign on the agenda of obstructing Trump.
"Last year, President Trump delivered the largest tax cut in American history, putting millions of dollars back in the pockets of Americans; this commonsense legislation is good for Illinois, but wannabe president, JB Pritzker would rather slam the door shut on opportunity and relief, knowing full well that he supported and empowered Joe Biden's economic disaster," Salvi told Fox News Digital.
"The sad truth is that if President Trump is for it, JB Pritzker will always be against it."
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Illinois Gov. JB Pritzker answers questions at an event at Union Station in Chicago on Dec. 16, 2025. (Eileen T. Meslar/Chicago Tribune)
Colorado Gov. Jared Polis, who is termed out and among names potentially running in the 2028 Democratic presidential primary, was called out by Rep. Gabe Evans, R-Colo., for action to tax overtime pay in future years.
"As a former cop in Colorado, I know firsthand how important overtime pay is to first responders, blue-collar workers, and hardworking families across America — that’s why I was proud to stand with Republicans to deliver no tax on overtime at the federal level," Evans told Fox News Digital.
"But while we fought to give Coloradans relief, Gov. Polis and state Democrats held a special session to re-tax overtime pay, ensuring families never see the benefits they earned. The contrast couldn’t be clearer."
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Gov. Jared Polis speaks to the National Governors Association at the Broadmoor Hotel in Colorado Springs, Colo., July 25, 2025. (AP)
Hochul's office told Fox News Digital that she "proposed eliminating the state income tax on tips in her 2026 State of the State,"
"The governor is committed to putting money back into workers pockets," Hochul spokeswoman Kristin Devoe wrote in a statement to Fox News Digital, claiming, "Republicans who oppose her affordability agenda are trying to rewrite the script."
"Governor Hochul is focused on delivering real relief for hardworking New Yorkers, not playing political games," Devoe added.
Fox News Digital reached out to the offices of Newsom, Pritzker and Polis for comment, but they did not immediately respond.
While the governors' seats in those four blue states are likely safe due to deep Democratic voter registration advantages, down-ballot races do have a narrative to carry under the Trump banner and the no tax on tips or overtime policy.
"Democrats are risking every race — from gubernatorial to congressional races — all to fund their insatiable appetite for taxing and fee-ing Americans into the ground," RNC spokeswoman Delanie Bomar told Fox News Digital.
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The Senate Finance Committee charted the One Big Beautiful Bill Act "wins" in all 50 states, including those four blocked by Democratic leaders where there still remains a permanent 20% deduction for many small business owners and a $1,500 increase in the standard deduction for millions of families.
- California: More than 3.1 million small business owners and 15.3 million families benefited.
- New York: More than 1.5 million small businesses, nearly 8.6 million families.
- Illinois: More than 1 million small businesses, almost 5.5 million families.
- Colorado: Almost 600K small businesses, nearly 2.6 million families.
https://www.foxnews.com/politics/republicans-rip-4-blue-states-keeping-taxes-tips-overtime-trump-reprieve