Republicans Advance Affordability Agenda to Help Workers and Homebuyers
May 28, 2025
Despite continued claims that affordability is a main priority of their conference, Senate Democrats on the Budget and Revenue Committee today blocked three common sense pieces of legislation that would have provided real, immediate relief to hardworking New Yorkers.
Among the bills blocked from moving to the Senate floor were measures designed to ensure New Yorkers are able to keep more of their hard-earned income in their own pockets by eliminating state income taxes on overtime pay and cash tips:
> S.587 (Senator Martins) would eliminate state income taxes on cash tips which are considered wages or compensation; and
> S.3914 (Senator Martins) would eliminate state income taxes on overtime pay.
In addition, a proposal (S.850, sponsored by Senator Pam Helming) that would provide a first time homebuyer tax credit was blocked.
The bills were placed on the agenda per a motion for committee consideration made by their Republican sponsors. Despite bipartisan support, the Committee declined to move the cash tips and homebuyer tax credit bills to the floor for a vote of the full Senate, and instead reported them to other committees to languish for the remainder of session. The bill to eliminate taxes on overtime was defeated outright.
“Overtime pay and tips should not be subject to taxation—plain and simple. It's an unfair burden on hardworking New Yorkers, especially those in lower-income brackets. As residents continue to leave our state in alarming numbers, refusing to support common sense measures like this - in addition to incentives for New Yorkers to own homes - will do nothing to stop the exodus. I urge my colleagues across the aisle to reconsider their stance and stand up for the workers who help keep our economy running, as well as struggling families,” stated Senator Bill Weber, ranking member of the Budget and Revenue Committee.
“If Senate Democrats were truly serious about making New York more affordable, they wouldn’t keep standing in the way of common-sense tax relief. Blocking bills that would let workers keep more of their overtime and tip income—and help first-time homebuyers—is a slap in the face to hardworking families who are just trying to get ahead. Even when a proposal to eliminate taxes on tips passed unanimously in our nation’s capital, Democrats in Albany still refused to act. They’re out of touch with reality and continue to ignore the financial struggles facing everyday New Yorkers,” stated Senator Steven Rhoads, member of the Budget and Revenue Committee.
“It’s no surprise that the Democrats once again stand in the way of helping workers in this State make ends meet. Ask them why. These bills would offer real relief to the lowest income earners in New York - those struggling the hardest with the cost of living in a Democrat run state. While I am deeply disappointed, we will continue advocating for workers in New York - they deserve better,” said Senator Jack M. Martins.
“At a time when inflation is soaring and housing costs are out of reach for so many, we should be doing everything we can to make homeownership more attainable—not less. My bill would have provided meaningful tax relief to home buyers without impacting local schools or services, and it would have helped hardworking New Yorkers build personal and generational wealth. The American Dream of owning a home is slipping further away for far too many young people, families and seniors. Once again, Senate Democrats missed an opportunity to help bring it back within reach,” said Senator Pam Helming.
These bills are a key aspect of the Senate Republicans’ Liberate New York agenda, of which a primary focus is helping make New York more affordable for all.
