Blue States Refuse To Follow Trump’s Lead On No Tax On Tips And Overtime

Treasury Secretary Scott Bessent on Wednesday blasted several blue states over their “ongoing refusal” to embrace some “key provisions” of President Donald Trump’s One Big Beautiful Bill Act (OBBB).

Trump signed the OBBB, which in part eliminated taxes on tips and overtime pay and solidified the tax cuts enacted during his first term, into law on July 4. Bessent said in a statement on Wednesday that Democrat-held states such as Colorado, New York, Illinois, as well as the District of Columbia, are “deliberately blocking their own residents” from receiving the “historic benefits” from the OBBB’s tax cuts.

Bessent also claimed in his statement that Trump’s OBBB is “the most pro-worker, pro-family legislation in a generation.” He added that the legislation “puts more money directly into the pockets of hardworking Americans through No Tax on Tips for dedicated service industry staff, No Tax on Overtime for linemen and factory workers, and a new tax deduction for seniors who depend on Social Security.”

“Yet in a blatant act of political obstructionism, liberal strongholds like Colorado, New York, Illinois, and the District of Columbia are deliberately blocking their own residents from receiving these historic benefits at the state level,” Bessent continued in his Wednesday statement. “This partisan stonewalling is a direct assault on the very families and workers liberal politicians claim to champion. By denying their residents access to these important tax cuts, these governors and legislators are forcing hardworking Americans to shoulder higher state tax burdens, robbing them of the relief they deserve and exacerbating the financial squeeze on low- and middle-income households.”

Moreover, Bessent urged the blue states to “immediately conform and stop punishing their citizens for partisan games.”

“President Trump’s vision is clear: real relief for the forgotten men and women of America, certainty for businesses, and momentum for growth,” the Treasury Secretary added. “The American people voted for bold change, not bureaucratic roadblocks.”

“Treasury stands ready to work with any state committed to delivering on that promise, but we will not stand idly by as this obstructionism drags down the national recovery,” he added. “This is about fairness. This is about opportunity. And this is about putting America first, starting with the families and workers who make our economy the envy of the world.”

Additionally, Bessent wrote in a Wednesday X post that thanks to Trump, “’tis the season to be jolly – unless you’re a taxpayer in New York, Colorado, Illinois, or the District of Columbia.” He wrote further that Democratic New York Gov. Kathy Hochul, Democratic Colorado Gov. Jared Polis and Democratic Illinois Gov. JB Pritzker are all “the Grinches Who Stole Christmas.”

Hochul’s office, Polis’ office and Pritzker’s office each did not respond to the Daily Caller News Foundation’s request for comment.

In July, Bessent touted the passage of Trump’s landmark legislation as the “biggest legislative win for American workers and families” in U.S. history. House Speaker Mike Johnson similarly praised the OBBB for delivering “nearly $1.6 trillion in savings, historic tax relief, a secure border, and energy dominance” in a July 21 X post.

In August, economist Steve Moore claimed during an appearance on Fox News’ “Hannity” that the GOP should go on the “offensive” and say Democrats in Congress who voted against the president’s OBBB also “voted for a $4 trillion tax increase.”