Blue State Governors Should Follow Trump's Lead and Eliminate State Taxes on Tips
Source: "I was a server for 8 years: Trump’s tip tax cut is a win, but blue states are stiffing us | Fox News." March 11, 2026. www.foxnews.com
The Gist
The author argues that state governors, especially Democrats, should copy Trump's policy of not taxing tips because it helps working families while barely affecting state budgets. He believes some governors are refusing to do this just to oppose Trump, which hurts the workers they claim to support.
Conclusion
State governors, particularly in blue states, should eliminate state taxes on tips to follow Trump's federal policy and provide relief to tipped workers
Premises
- Trump's federal tax cut eliminating taxes on tips up to $25,000 has been beneficial for tipped workers
- States that still tax tips create incentives for workers to underreport income, harming both workers and tax compliance
- The revenue loss to states from eliminating tip taxes is minimal compared to their overall budgets (e.g., Maine would lose only $9.2 million from a $14.5 billion budget)
- Higher reported tip income helps workers qualify for credit to buy cars and homes
- Some states have already successfully adopted no-tax-on-tips policies, proving it's feasible
- Democratic governors like Gretchen Whitmer have shown bipartisan support is possible by signing tip tax elimination laws
- Tipped workers face financial hardship from inflation and reduced consumer spending, making tax relief especially important
Assumptions
- Eliminating taxes on tips will lead to higher reported income rather than workers simply keeping more unreported income
- The federal policy of no taxes on tips is inherently good policy that states should emulate
- State tax revenue from tips is not essential for important government services
- Tipped workers deserve special tax treatment compared to other low-wage workers
- Political opposition to Trump's policies is the primary reason blue state governors haven't adopted similar measures