Some Liberal States Refuse Trump’s New Federal Tax Breaks for Their Citizens

Why would a state do this to its people?  Who would ever vote for this?

The Trump tax cuts in the Big Deal signed on July 4th will cover all states across the nation for workers’ federal taxes.  However, some states do not include these savings or tax breaks in their state taxes.

Newsweek reports:

The One Big Beautiful Bill Act (OBBBA) introduced wide-ranging tax changes for seniors, service workers, car buyers and others.

Among its major provisions are an expanded deduction for older Americans; a rule allowing service workers earning under $150,000 to exclude up to $25,000 in tip income from federal taxes; and a new exemption from overtime pay for up to 250 hours. Car buyers earning less than $100,000 can also deduct interest on auto loans up to $10,000.

But state tax systems do not automatically match federal rules. While many start with the Internal Revenue Code as a foundation, each state decides for itself which federal updates to adopt, and when. As a result, some residents will benefit on their federal returns but see no equivalent changes on their state filings.

The states that will not include these breaks in their state taxes are included in the chart above, which includes Colorado, Illinois, New York, Maine, and DC.

Secretary Bessant shared the following:

Thanks to @POTUS , ‘tis the season to be jolly – unless you’re a taxpayer in New York, Colorado, Illinois, or the District of Columbia.

For millions of hardworking Americans, @GovKathyHochul @GovofCO @jaredpolis , and @GovPritzker  are The Grinches Who Stole Christmas.

Courtesy of their Scrooge-like tendencies, America’s seniors, along with all workers who would benefit from No Tax on Tips and No Tax on Overtime, will be robbed of the tax relief they deserve.

The Christmas season should be a time of great cheer. But due to the Trump Derangement Syndrome of these Governors and other radical leftists, too many low- and middle-income households will receive nothing but coal in their state tax stockings.

https://t.co/peH3znDVSP

— Treasury Secretary Scott Bessent (@SecScottBessent) December 10, 2025

The Democrats have no problem hurting their own people.  It is what they do.