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Hochul Proposes Tax Break for Tipped Workers by 2027

1/2/2026

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Story summary
  • Kathy Hochul, the governor of New York, proposed eliminating state income taxes on up to $25,000 in tipped income for the 2027 fiscal year.
  • The plan aligns with federal provisions from U.S. President Donald Trump’s "One Big Beautiful Bill" that allow similar deductions.
  • Critics argue Hochul delayed action due to political pressure.
  • Service industry workers say the tax relief could significantly improve their financial stability.