Overview
- Treasury Secretary Scott Bessent accused New York, Colorado, Illinois and Washington, D.C., of deliberately blocking state-level adoption of One Big Beautiful Bill provisions and urged them to immediately conform.
- Trump’s July 4 law ends federal taxes on tips and overtime pay and adds a new deduction for seniors, which states may choose to mirror or reject under their own tax codes.
- State actions differ: New York and Illinois declined both the tips and overtime relief, Colorado kept tip relief but rejected the overtime deduction, and Maine and D.C. also declined certain federal changes.
- Bessent’s posts featured an image labeling Governors Kathy Hochul, Jared Polis and J.B. Pritzker as “The Grinches Who Stole Christmas,” while a Treasury statement argued nonconformity increases residents’ state tax burdens.
- Polis defended Colorado’s broader tax cuts and said the state conforms on tips, Hochul mocked the Treasury’s message, and Pritzker’s office offered no comment, as Treasury said it stands ready to assist states that choose to align.