Democrats have finally found a way to raise your taxes without admitting they’re raising your taxes: they just pretend the tax cuts Republicans passed in the One Big Beautiful Bill Act never happened.
In recent weeks, blue state governments have launched a crusade to “decouple” from the tax cuts passed earlier this year as part of President Donald Trump’s signature legislation. No tax on tips? Gone. No tax on overtime? Gone. A $6,000 bonus deduction for senior citizens? Forget about it.
If you want to understand what decoupling is, just imagine you walk out of the IRS with a big, fat federal tax break in your pocket, only to be met in the parking lot by your state government holding a crowbar and asking, “Whatcha got there?” Congratulations – you’ve just experienced “decoupling.”
In practical terms, when the federal government makes changes to tax policy (like eliminating taxes on tips) states usually mirror those cuts to keep things simple. But they don’t have to. Blue state politicians have now realized that if they decouple, they can quietly scrub President Trump’s tax cuts from state returns while still pretending they didn’t raise taxes.
As a result, millions of Americans are about to learn the hard way that their state tax bill can go up even when their federal tax bill goes down. A waitress in Denver will still see “no tax on tips” on her federal return, then flip to her Colorado return and discover she has to add all those tips back to her calculations for state income tax purposes.
Similarly, a 70-year-old retiree in Maine who thought President Trump just gave him a $6,000 bonus deduction to effectively nullify any taxes he would owe on Social Security income will still receive that deduction federally – but he’ll have to add that $6,000 back to his state return, costing him hundreds of dollars per year depending on his tax bracket.
By decoupling, Democrats are striking a direct hit on the very people they claim to champion: workers, seniors, moms, dads, and anyone who isn’t a lobbyist or a government bureaucrat.
In deep-blue capitals where the government is always on the verge of some new self-induced fiscal apocalypse, decoupling has suddenly become the hottest trend since Democrats decided math is racist.
Just look at the lineup of states rushing to steal your money.
Washington, D.C., is clawing back the $6,000 bonus senior deduction and the no tax on tips deduction. Local politicians complain that they need to fill a budget hole because income tax revenues have dropped dramatically since Trump fired so many federal bureaucrats.
Colorado rejected the tax cut on overtime pay because heaven forbid people who work extra get rewarded for their efforts.
New York and Illinois are forcing citizens to add back both tip income and overtime pay for their state returns.
And then there’s Maine, which rejected the senior deduction and no tax on tips and no tax on overtime, and the car-loan interest deduction. Maine looked at Trump’s tax cuts and said, “We’ll take none of that, thanks. Also, your new heating bill is $1,200 a month.”
California, Massachusetts, Connecticut, and Hawaii have also indicated that they plan to claw back some or all of the federal tax cuts. Many others are considering decoupling but haven’t announced a decision yet.
But don’t worry – your suffering is for a good cause. These blue states desperately need money for very important priorities, like lavish healthcare benefits for illegal aliens, heroin-for-the-homeless needle exchange programs, and the part-time social media manager hired to inform residents about the next “Pride Month” celebration.
And who loses? Seniors. Waitresses. Bartenders. Car buyers. Tradesmen. People with sweat on their brow and calluses on their hands. People who save for retirement. People who actually create value.
Moreover, tax experts are warning taxpayers to pay close attention to state rules over the next few years because the new landscape will be confusing. Of course it’s confusing – that’s the point. When liberal politicians want more of your money, they rarely walk up and say, “Please hand it over.” Instead, they build a labyrinth, hide the exits, and then wait for you to get tired and give up.
The two visions of government have never been clearer. While President Trump is lowering taxes and giving Americans a break, blue state Democrats are busy ransacking your wallet like a smash-and-grab job at a San Francisco Walgreens.
One side thinks the money you earn belongs to you. The other side thinks it belongs to them, and they’re gracious enough to let you keep whatever scraps they don’t feel like voraciously devouring at the moment.
The good news, if you can call it that, is that there’s always a solution. It’s called “moving.” That’s why U-Haul trucks are permanently sold out in California and New York and endlessly available in Florida and Texas.
As long as Democrats keep decoupling from common sense, Americans stuck in blue states will have no choice but to keep voting with their feet.
Mike Marlowe is the pen name of a writer based in Texas.
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