Treasury Secretary Scott Bessent criticized blue states that have declined provisions in the One Big Beautiful Bill Act, accusing them of playing the Grinch against citizens’ Christmas tax relief.
Several states across the nation have opted out of enforcing the bill’s no-tax-on-tips or overtime provisions in an effort to keep their budgets in the black.
Bessent described the leaders of a few states that denied provisions of the tax relief, including New York, Colorado, and Illinois, as “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,” he wrote on X.
“The Christmas season should be a time of great cheer,” he added. “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.”
The states have passed legislation to “decouple” from the federal government on certain tax provisions, spurning tax relief for residents working for tips or overtime, but also saving money for their budgets.
Maine and Washington, D.C., have also chosen not to adopt certain federal tax provisions.
Each state has made nuanced moves to block the tax legislation. New York and Illinois have refused to accept the tips and overtime deductions. Colorado has refused just the overtime deduction, keeping the tip tax relief. Maine has refused both tip and overtime deductions, in addition to select business deductions.
Many other states are still waiting to see whether they will conform to the new standards. Georgia, Maryland, and South Carolina have not yet addressed the tax relief, but are likely to do so next year.
“Rolling conformity” states have automatically adopted the new federal tax provisions, while “static conformity” states have acted with legislation to conform or “decouple.”
In contrast to the blue states leaning away from the provisions, Arizona, North Carolina, and New Jersey have passed or proposed legislation to adopt the provisions, despite being “static conformity” states.
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The One Big Beautiful Bill Act is a cornerstone of the Trump administration’s tax policy, aiming to cut taxes for millions of Americans. Democrats previously criticized the funding bill for its healthcare cuts.
Bessent has called the bill the “most pro-worker, pro-family legislation in a generation.”
