ALBANY — Piggy-backing off an idea made popular by President Donald Trump during his presidential campaign, state Republican lawmakers on Monday called for the elimination of taxes paid on tips and overtime in New York.
State Sen. Minority Leader Rob Ortt, R-North Tonawanda, led a press conference in the state capitol where he and other GOP lawmakers called on their Democratic colleagues to “provide relief for hardworking New Yorkers” by passing a pair of proposed tax-reduction bills.
The bills, if approved by the state legislature and signed into law by Gov. Kathy Hochul, eliminate state income taxes on cash tips which are considered wages or compensation and eliminate state income taxes on overtime pay. The measures are part of the so-called “Liberate New York” agenda touted by Ortt and other senate Republicans.
The proposals follow Trump’s pledge during last year’s presidential race to cut taxes on tips to help restaurant workers and others who receive tipped wages.
The Republicans did not discuss any potential state budget ramifications, if any, should the bills be approved. Ortt said the proposed bills would impact about 1 million workers in New York and would result in about $1.25 billion being “put back into their pockets.”
“This is a way for us to lead,” Ortt said. “I know they are talking about this at the federal level. Why should we wait? Why not lead by example?”
State Sen. Sean Ryan, D-Buffalo, suggested GOP leaders should be as concerned about the potential economic impact on the state should Trump follow through on his threat to impose tariffs on Canadian goods on Tuesday.
“I’m glad to see our friends on the other side of the aisle put forward their own ideas, but they can start by demanding that President Trump end his economic war with Canada and actually focus on lowering costs for Americans, as he promised he would do throughout the campaign last year,” Ryan said. “He has already broken his pledge to lower prices on day one, and seems more focused on starting fights with our allies rather than addressing the impact of inflation.”
Ortt said there’s Democrats should oppose eliminating state taxes on tips and overtime, arguing that both GOP-supported bills warrant bipartisan support. He noted that, while on the campaign trail, Trump’s Democratic opponent Kamala Harris endorsed the idea of eliminating taxes on tips.
“I know she didn’t agree with everything with President Trump, but she did agree on this because it was the right thing to do,” Ortt said.
State Senators Jack Martins, R-Mineola, and Steven Rhoads, R-Wantagh, introduced the bills, which Martin said would provide “real relief” to New Yorkers who have faced a 25% increase in the cost of living over the past four years.
“Time and again we forget those people who are most vulnerable and if you look at it, people who are earning tip wages are in that category,” he said.
“Middle-class families need relief, not more government bloat,’ Rhoads said. “If the Senate Majority is actually serious about making New York affordable — not just growing the budget — they’ll put these bills in the budget. It’s time to cut the nonsense, cut the taxes, and let New Yorkers catch a break.”