Governor Kathy Hochul’s push to wipe state income taxes off the first $25,000 in tipped wages may feel like a win for servers and bartenders, but New York City budget officials see something else entirely: a growing hole in the city’s finances. The Mayor’s February financial plan pegs the hit at about $56 million in the next fiscal year and roughly $239 million over four years, a loss city leaders say will make already tense budget talks with Albany that much trickier. The proposal mirrors a new federal deduction and has sparked a fight over who really benefits and who picks up the tab.
The math: How the hit to the city adds up
Hochul’s plan would exempt up to $25,000 of reported tip income from state personal income tax starting with tax year 2026,…..