The city could lose $239 million from the policy, which is supported by business groups while unions remain on the sidelines.
The city could lose $239 million from the policy, which is supported by business groups while unions remain on the sidelines. ·  View in browser
NEWSLETTER
Governor Kathy Hochul is proposing to eliminate state income taxes for tipped wages up to $25,000, and Mayor Zohran Mamdani says he supports ending taxes on tips as well. Photos: Mike Groll/Office of Governor Kathy Hochul; Ed Reed/Mayoral Photography Office; Africa Images/Canva | Illustration: Leor Stylar
The city could lose $239 million from the policy, which is supported by business groups while unions remain on the sidelines.
By Nick Garber

Mayor Zohran Mamdani is haggling with Albany over every cent he can get for New York City in the state budget. But he is raising no objections as the state embraces a tax policy, widely criticized by economists, that will cost the city hundreds of millions of dollars.

Governor Kathy Hochul is proposing to eliminate state income taxes for tipped wages up to $25,000. The move followed pressure from her Republican challenger in this year’s election and would align New York with an identical change to the federal tax code enacted by President Donald Trump last year. The state Senate and Assembly are backing Hochul’s proposal, meaning it will likely be approved in the final state budget.

With its populist appeal, “no tax on tips” has enjoyed bipartisan support since Trump first proposed it during his 2024 presidential campaign; Democrat Kamala Harris quickly followed suit. But tax policy experts across the ideological spectrum are deeply skeptical, calling the policy unfair and potentially harmful to the workers who need the most help.

Each year, the New York state legislature passes more bills than any other — but the vast majority receive no press coverage. New York Focus is partnering with NYU journalism and law school students to report on undercovered bills and regulations. Sign up on Substack to get Under the Radar stories in your inbox.

Recent Stories

The climate fight is the latest example of Mamdani’s efforts to avoid antagonizing the governor. Photo: Ed Reed/Mayoral Photography Office
Some climate activists want the mayor to take a stronger stance. He previously said the state’s climate law “is not a suggestion. It is a mandate.”
By Nick Garber and Colin Kinniburgh

New York City Mayor Zohran Mamdani is staying on the sidelines as a fight over the state’s climate law reaches a boiling point.

Mamdani has pointedly avoided taking a position on Governor Kathy Hochul’s proposed rollbacks to the 2019 Climate Leadership and Community Protection Act, or CLCPA, even as his socialist allies in the legislature rail against the proposals. Asked directly by New York Focus on Wednesday, Mamdani twice declined to say whether he has a position on Hochul’s push, saying only that he supported the original law.

The New York Health Information Privacy Act would limit the ability of digital health product companies to collect and sell users’ health data without their consent. Photos: Sergey Nivens, pixelshot, Titima Ongkantong/Canva; Robin Marty/Flickr; Wikimedia Commons | Illustration: Leor Stylar
Amid abortion bans and rising digital surveillance, Albany lawmakers are revisiting an effort to stop companies from selling sensitive health information.
By Leah Clark and Gabriella Limón

From fitness watches to period-tracking apps, health products are increasingly collecting personal data from everyday activities. The issue has drawn increased attention since the Supreme Court overturned Roe v. Wade, amid reports of data being used to target anti-abortion ads at clinic visitors and to prosecute people seeking gender-affirming care across state lines.

Last year, Albany lawmakers passed a bill to prohibit companies from collecting and selling health data without users’ consent — but business groups argued its provisions were too far-reaching, and Governor Kathy Hochul vetoed it. Now, legislators have introduced a narrower version they hope can make it past the governor’s desk.

New York City Public Schools Chancellor Kamar Samuels traveled to Albany on Tuesday to press lawmakers to approve a four-year extension of mayoral control; in turn, lawmakers pressed him on the class size law. Photo: Michael Appleton/NYC Mayor's Office
The administration will soon send legislators a plan to meet a mandate capping class sizes, said NYC Schools Chancellor Kamar Samuels.
By Melissa Manno

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