New York lawmakers called for the governor-appointed chairman of the New York City transit system to be fired amid accusations he downplayed a rash of subway crime to praise new Manhattan tolls that are aimed at driving commuters underground.
In comments on a Bloomberg podcast, MTA Chairman Janno Lieber argued that crime on the MTA has declined and that the recent viral incidents are giving an impression of a system-wide safety crisis.
"The overall stats are positive. Last year, we [had] actually 12.5% less crime than 2019 . . . , " he said.
"But there's no question that some of these high-profile incidents; terrible attacks, have gotten in people's heads and made the whole system feel less safe."
Rep. Michael Lawler, R-N.Y., shared a clip of Lieber ceremonially unveiling one of the new "Congestion Pricing" setups near Lincoln Center and said the agency "needs an enema; starting with Janno Lieber."
"Imagine being such an a--hole as to celebrate screwing New Yorkers out of their hard-earned money just for the privilege to drive to work," Lawler wrote, adding that Hochul "needs to be defeated in 2026."
Lieber ripped Lawler in response, telling MSNBC that the Rockland County lawmaker was dabbling in "grievance politics."
Lieber claimed that a plurality of Lawler’s constituents – in bedroom communities 30 miles north of the city – already rely on mass transit and that only "one percent" make the daily drive down the Palisades to the "congestion-pricing" zone.
New York’s new $9 toll to enter any part of Manhattan below Central Park has enraged commuters, as well as residents within its bounds.
Commuters from Long Island found themselves bottlenecked in trying to access the last unaffected entry to Manhattan – the Upper Level of the Queensboro Bridge.
One East Side luxury building's exit also unintentionally forced residents through a toll gantry, even if they are trying to go uptown; away from the zone, while outer neighborhoods braced for a deluge of suburbanites looking for parking to avoid the toll.
New York Senate Deputy Minority Leader Andrew Lanza, R-Staten Island, torched Lieber:
"Janno: pull your head out of your piles of statistics, get out from behind your computer, and walk a mile in your riders’ shoes before you ignore, dismiss and insult them," Lanza said.
"The people of this state and city deserve the truth and real solutions, not eggheads trying to convince themselves they’re doing a good job."
Sen. Bill Weber of Valley Cottage added: "Albany Democrats claim congestion pricing is to reduce traffic congestion, but at what cost? It punishes everyday people—working parents, firefighters, seniors going to doctor's appointments, and those who already struggle to make ends meet."
"For them, this isn’t just a toll; it’s another obstacle in their daily lives. Tell me, how is that progressive?" he asked.
Sen. Steve Rhoads of Nassau previously quipped that the MTA’s acronym stands for "Money Thrown Away" and said this week that his constituents who rely on trains like the LIRR have grown distrustful of the agency.
"[Lieber] has no idea what it is to be a working-class New Yorker," Rhoads said. "While affordability and safety are huge concerns for real people, they are abstract concepts for him."
Lieber was previously an executive at Silverstein Properties — recently overseeing a World Trade Center project — a transportation adviser to President Bill Clinton and Mayor Ed Koch, and a journalist for the New Republic.
He was also the MTA’s capital development officer under Gov. Andrew Cuomo.
Cuomo, who still strongly supports the congestion pricing plan, recently told Fox News Digital through a spokesman that he, however, has reservations about whether now is the right time to activate the tolls – given the lack of confidence in subway safety and changes in the city since the COVID-19 pandemic.
"It is undeniable that New York is in a dramatically different place today than it was in 2019, and without a study forecasting its consequences based on facts, not politics, it could do more harm than good to New York City's recovery," Cuomo spokesman Rich Azzopardi said last week.
State Sen. Alexis Weik, R-Suffolk, called the video of Lieber’s Broadway sign-reveal "a despicable show of glee and greed" and called for a financial review board to scrutinize the transit agency’s books.
In response to the slew of calls for Lieber's ouster, MTA Chief of Policy & External Relations John J. McCarthy defended the transit boss.
"Under Chair Lieber’s leadership, the MTA has added service, opened new terminals and provided record on-time performance for their constituents on Long Island and the Hudson Valley, while delivering the most reliable subway service in a dozen years," McCarthy said.
"But apparently, none of that prevents out-of-touch politicians from bloviating."
Canada's conservative movement could gain significant momentum in this election year as Prime Minister Justin Trudeau announced his resignation amid mounting pressure from domestic critics and tariff threats from U.S. President-elect Donald Trump.
Meanwhile, American conservative strategist Matt Shupe has been leading efforts in Calgary, training activists, consultants and volunteers on how to build winning campaigns, positioning the movement for potential gains in the post-Trudeau era.
"From my own experience in Canada, I would describe it as California on steroids," Shupe, 39, who most recently was the spokesperson for ex-MLB star Steve Garvey's mayoral campaign in Los Angeles, told Fox News Digital in an interview.
Shupe, who began political consulting 10 years ago and founded Praetorian Services, said Trudeau's resignation is reminiscent of President Biden's exit from the 2024 presidential race.
"They took a page out of the DNC playbook with what they did with Biden," Shupe said of Canada's liberal flank. "If American politics serves as any sort of analog, that didn't work for Kamala."
Shupe noted that his conversations with Canadians suggest progressive policies have pushed even many liberals toward the center. Working with the Leadership Institute, a conservative mentorship and training organization, Shupe said leaders plan to apply lessons and data from U.S. elections to strengthen the prospects of Canadian conservatives.
"The [conservative] movement has primarily attracted young people because they don't have the prospects," he said. "They're taxed so heavily there, the cost of living is so high compared to their income, and the cost of owning a home is so hard. Whenever I go there and talk to people my age or younger, even a little older, they all have the same complaints as people I talk to in San Francisco."
Meanwhile, Canada's firebrand conservative candidate Pierre Poilievre, who could become the nation's next leader, has been compared to the likes of President-Elect Donald Trump, vowing to crack down on immigration, inflation and the budget deficit.
"I think you're seeing that with the left in Canada and in the United States, is that they just took everything too far, and they hit a threshold with people that it's just gone too far," he said.
Poilievre, whose Conservative Party has nearly three times the support of committed voters (47% compared to 18% for the Liberals) in this year’s general election, was first elected to the House of Commons in 2004. The 45-year-old Calgary native became leader of the Canadian Conservatives in 2022 and has seen his party grow in popularity as Canadians have grown tired of 53-year-old Trudeau, whose Liberals formed the government in 2015.
The incoming Trump administration will likely soon deal with a Poilievre government as the Conservatives are poised to win the next Canadian election, which could come as early as this spring. When the House of Commons resumes sitting on March 24, the opposition parties are likely to defeat the minority Liberal government in a vote of no-confidence, which would trigger a national vote that presently favors the Conservatives.
In his Peterson interview, Poilievre acknowledged that Trump, who has proposed a 25% tariff against Canadian imports, "negotiates very aggressively, and he likes to win." But as prime minister, the Conservative leader said he would seek "a great deal that will make both countries safer, richer and stronger."
Trudeau, after nearly a decade in power, has faced months of declining approval ratings amid growing frustration over rising inflation and the soaring cost of living.
"I intend to resign as party leader, as prime minister, after the party selects its next leader through a robust nationwide competitive process," Trudeau told reporters Monday. "Last night, I asked the president of the Liberal Party to begin that process. This country deserves a real choice in the next election, and it is become clear to me that if I'm having to fight internal battles, I cannot be the best option in that election."
"As you all know, I am a fighter, and I'm not someone who backs away from a fight. Particularly when the fight is as important as this one is. But I have always been driven by my love for Canada, by my desire to serve Canadians and by what is in the best interests of Canadians, and Canadians deserve a real choice in the next election," Trudeau added. "And it has become obvious to me with the internal battles that I cannot be the one to carry the liberal standard into the next election."
Fox News Digital's Christopher Guly contributed to this report.
In a Sunday post on Truth Social, Trump said, "Members of Congress are getting to work on one powerful Bill," that will eliminate taxes on tips as part of a wider push to extend the tax cuts passed in his first term. The post also said that his plan will be paid for through tariffs. Trump proposed making tips exempt from federal income tax on the campaign trail, as well as slashing taxes on overtime and Social Security benefits.
Economic experts pointed out that Trump's proposal — and one from Harris that followed similar contours — would have little impact on lower-earning workers, with many exempt from taxes already due to how little they make. The Yale Budget Lab found that just around 4% of families on average between 2017 and 2022 reported tips to the IRS.
Ernie Tedeschi, Yale Budget Lab's director of economics, also found that over one-third of tipped workers already had low enough earnings that they owed no federal income tax, meaning they wouldn't see benefits from the proposal.
"It is a relatively low-cost way of trying to provide relief to highly visible low-income workers," Tedeschi told BI. But it could also be felt unevenly among otherwise similarly-paid workers. Tedeschi gave the example of a cashier at McDonald's and a tipped waiter at Waffle House. Both are in fast food service, but the tipped waiter would benefit based on tipping conventions, while the cashier would not.
Even so, a subset of workers would stand to benefit from the proposal. The Yale Budget Lab studied who would be impacted by eliminating taxes on tips. Tipped workers tended to skew younger, per a June analysis of Census Bureau data from Tedeschi. The median tipped worker in 2023 was 31 years old, and a third of tipped workers were under the age of 25.
The Yale Budget Lab also looked at what roles and industries tipped workers are concentrated in. Across industries, restaurants and other food services had the greatest share of total tips — which is unsurprising, considering how compensation is generally structured in that industry. In 2023, the median pay for food and beverage serving and related workers was $14.29 per hour, according to the Bureau of Labor Statistics.
The Yale Budget Lab also looked at which occupations were getting the lion's share of tips. Waiters and waitresses received over a quarter of all tips, while bartenders raked in about a fifth. Couriers and messengers were also getting a larger share of tips — increasing from under 1% in 2017, per the analysis. That group includes, in part, delivery gig workers.
Some economists and tax experts previously told Business Insider that unless care is taken, some higher-paid professionals could restructure their compensation to take advantage of a tax exemption for tips by reclassifying salary pay as a "gratuity" instead.
The Trump campaign did not respond to BI's request for comment on the policy proposals and their impact.
Should an end to paying federal taxes on tips become law, families impacted could see an average tax cut of $1,700, per the analysis, although lower earners would see a much more modest cut. But right now, nothing is set in stone — Republicans and Trump are still crafting their tax plans, and any potential package could emerge much different than it began.
Are you a tipped worker who would benefit from eliminating taxes on tips? Contact this reporter at [email protected].
As New York’s "congestion pricing" inner-city tolling plan takes effect Sunday, one of its major proponents is questioning whether the timing is right for a policy meant to drive people to an increasingly dangerous mass transit system.
Through a spokesman, former Gov. Andrew Cuomo confirmed that he still backs the system that now tolls drivers $9 to cross below Central Park or enter Lower Manhattan from Brooklyn and New Jersey – but questioned whether now is best to implement it.
"Governor Cuomo believes congestion pricing is ultimately the right policy, which is why he fought and succeeded in passing it after more than a decade of failed attempts," longtime spokesman Rich Azzopardi told Fox News Digital on Friday.
Azzopardi said that Cuomo’s original plan, which found agreement from then-Mayor Bill de Blasio, was based on a "safe and reliable subway system" and a thriving city core. Prior Mayor Michael Bloomberg had proposed a similar plan in 2007, but it died in Albany.
"[G]iven the obvious lack of confidence the public currently has in the subway system – combined with the tenuous state of New York City post-COVID, [Cuomo] called for a data-driven study on the impact of congestion pricing to inform the timing of such a major policy change and to ensure New York was not creating additional obstacles to its comeback."
Cuomo previously wrote in a March op-ed that congestion pricing’s success hinges on confidence in the MTA and mass transit, which he noted has also statistically still not recovered from COVID levels.
He noted how congestion pricing is meant to "incentivize" subway use – but that that is hard to do when people are getting brutally attacked underground – and noted that it was his father, Gov. Mario Cuomo, who first beefed-up police presence after the "bad old days."
At the time of a prior column in the Post, Cuomo cited a conductor with 24 years of service to the MTA vowing never to go back underground after he was slashed in the neck and required 34 stitches while operating an A train in Bedford-Stuyvesant, Brooklyn.
More recently, an Ocean County, N.J., woman was burned alive in Coney Island, and there have been several near-fatal cases of people being randomly shoved in front of trains, occurring from Morningside Heights to TriBeCa, since Christmas.
"It is undeniable that New York is in a dramatically different place today than it was in 2019, and without a study forecasting its consequences based on facts, not politics, it could do more harm than good to New York City's recovery," Cuomo’s spokesman said Friday.
But Cuomo’s onetime deputy, Gov. Kathy Hochul, appeared full-steam-ahead in enacting the policy, which is intended to drive commuters and residents to consider mass transit to head to work or play in Midtown.
In a recent statement lauding her current plan, Hochul’s office said the reduction of the congestion toll from its original $15 will save drivers $1,500 per year, and that commuters will see "new and improved subway services."
"By getting congestion pricing underway and fully supporting the MTA capital plan, we’ll unclog our streets, reduce pollution and deliver better public transit for millions of New Yorkers," Hochul said.
MTA Chairman Janno Lieber, who oversees the state-run metro subway, bus and rail network, said that Hochul is "stepping up" for people who want cleaner air, safer streets and less gridlock.
He also noted that upgrades have already taken place on the 7 subway from Times Square to Flushing, Queens, and the L train from Union Square to Canarsie.
However, Cuomo’s camp maintains that it was he who envisioned and oversaw the upgrades to New York’s transit network without the added tolls in effect – and ripped Hochul and Lieber for claiming that he had gotten cold feet.
When the New York Post asked Hochul for comment on Cuomo suggesting she "hit the brakes" on congestion pricing, the governor directed comment to a Lieber spokesman, who blasted Cuomo for "flip-flopping."
"What would really harm New York’s continuing recovery is starving subways of a desperately needed source of funding after decades of underinvestment," the MTA’s Aaron Donovan said.
"The $15 fee was passed by the MTA under Hochul’s watch, but please gaslight away," Azzopardi told Fox News Digital. "New Yorkers aren’t stupid."
Cuomo previously told WNYW that people have the option to work from home, which they didn’t have when he first pushed the plan in 2019 – and that if he were a commuter, he would likely balk at the idea of added costs at a time of "high crime and homelessness."
Cuomo’s camp also said that Hochul likes to take credit for the achievements of his three-term administration that presaged the new tolls.
"The difference here is that Governor Cuomo built the [new Amtrak/MetroNorth] Moynihan Train Hall and the Second Avenue Subway [extension to East Harlem], as well as fixed the L train and did the hard work to get [Grand Central’s] East Side Access and the LIRR Third-Track done. All Hochul wanted to do was cut the ribbons," Azzopardi said.
Cuomo’s calls for a pause were joined by several New York Republicans, yet the former governor and potential 2025 mayoral candidate remains supportive of congestion pricing, while the GOP wants it nixed entirely.
Commuters from New Jersey must still pay Port Authority tolls to cross the Hudson River, and outer-borough commuters the same via the East River – albeit with a slight credit toward their "congestion" fee.
Drivers who remain on the FDR Drive or Joe DiMaggio West Side Highway will not be charged unless they turn onto surface streets.
Washington state Democrats appeared to have accidentally emailed their sweeping revenue plans and internal talking points on tax hikes to the entirety of the upper chamber's members in Olympia, Fox News has learned.
Property tax hikes and a new double-digit tax on firearms are among proposals Washington state Democrats are considering, according to materials originally disseminated to all members by Washington Senate Deputy Floor Leader Noel Frame, D-Seattle, in late December and later obtained by Fox News Digital.
A document titled "2025 Revenue Options" and a PowerPoint presentation describing how to talk to constituents in defense of the plan were included in the messages.
The document lists proposed figures for an 11% tax on ammunition and firearms, reclassifying storage unit rentals as a retail transaction and a lift on the property tax levy lid for certain Washingtonians.
A PowerPoint slide, highlighted by Seattle radio host Jason Rantz, described the "Best way to talk taxes" — with a chart of do’s and don’ts for lawmakers.
Do say: "Pay what they owe" — but Don’t say: "Tax the rich" or "pay their fair share" because "taxes aren’t a punishment," the graph read.
It also suggested using the terms "funding," "providing" and "ensuring" when describing the apparent benefits of tax hikes, rather than the term "investing in [X]."
"Avoid centering the tax or talking in vague terms about ‘the economy’ or ‘education.’"
One of the new proposals is that of a "capital assets ownership tax."
It is described as similar to property taxes, but instead would extend the real estate-type tax to holdings in stocks, bonds and other financial instruments.
"We can ensure that extremely wealthy Washingtonians are taxed on their assets just like middle-class families are already taxed on theirs," the slide reads.
Another line directs lawmakers to proverbially "identify the villain" that is blocking "progress" and lay out "how we can take action to solve the issue."
"We have an upside-down tax code that benefits big corporations and the wealthiest few, that was written 100 years ago and desperately needs an update for the 21st century. If we ensure Washington’s wealthiest pay what they truly owe in taxes, the rest of us will have what we need — like affordable health care, housing, and food."
Rantz said in a column for MyNorthwest.com that the plans accidentally shared present a "direct contradiction" to promises from Democrats during the election cycle and lay out 10 total new taxes on residents.
"These proposals come at a time when the state has seen years of record revenue," Rantz said, going on to claim some of the "tax schemes" may also be unconstitutional.
He added that capital gains taxes actually discourage growth and potentially lead to reduced job opportunities for the same workers pro-tax Democrats claim to want to help.
One example he presented was the departure of Amazon founder Jeffrey Bezos from Washington state. Upon establishing his new Florida residency, one of America’s richest men saved about $1 billion in taxes that also no longer go toward funding the Evergreen State’s programs.
Rantz added that the Washington state Democratic electorate often decries the affordability crisis but then goes on to re-elect the same politicians that exacerbate it.
Additionally, as Democratic Gov.-elect Robert Ferguson is set to take office later this month, State Rep. Travis Couture, R-Allyn, slammed outgoing Gov. Jay Inslee’s 2025 budget proposal.
"This budget is not a serious proposal," said Couture, the House budget panel’s top Republican.
"Our state has a spending problem, not a revenue problem," he said.
Fox News Digital has reached out to Frame for comment but did not hear back by publication time.
In the 1942 film "Holiday Inn," legendary crooner Bing Crosby describes the stroke of midnight on New Year’s as "one minute to say goodbye before we say hello." In 2025, Americans in several states around the country are "saying hello" to many new laws and changes in tax codes.
In West Virginia, for example, residents saw an automatic 2% personal income tax cut taking effect on New Year's Day.
"If anybody says there’s something [else] that could drive more growth to West Virginia than that, you’re out of your mind," outgoing Republican governor and Sen.-elect Jim Justice quipped of that particular policy change.
However, other states’ residents may face more proverbially "draconian" policies and regulations. Here's a look at some of them.
"Congestion pricing"
The Empire State’s heavily-debated congestion pricing law will take effect on Sunday, Jan. 5.
While Gov. Kathy Hochul and MTA Chair Janno Lieber have been supportive of the change, which charges the average driver crossing or entering Manhattan below Central Park a photo-enforced $9 toll, many New Yorkers remain outraged.
"Congestion pricing, the latest in a long string of tyrannical taxes, has been pressed forward through consistent opposition about the burden on New York families and workers," several New York Republican federal lawmakers wrote in a December letter.
Meanwhile, Democrats like State Sen. Andrew Gounardes of Bay Ridge had urged the congestion-pricing plan to begin "immediately, before [Donald] Trump can block it."
Lather up
Visitors to one of the most popular tourism states in the country will no longer be welcomed by travel-sized shampoo and lotion bottles, as they will be prohibited come the New Year.
The Empire State's ban took effect on Jan. 1, while a similar ban in Illinois goes into practice on July 1 for larger hotels and Jan. 1, 2026, for smaller ones.
While many hotels across the country have transitioned to affixing bulk shampoo dispensers into shower walls, many tourists still prefer the tiny bottles.
Tax hikes
California’s SB-951 of 2022 stipulated that workers will have slightly more money withheld from their paychecks in 2025. The state’s disability insurance program rate is to increase from 1.1% to 1.2%.
The average California worker will see $8 less per month in their net pay.
Gas prices
California Republicans estimated that new regulations taking effect in the New Year will cause "major sticker shock" for drivers in the Golden State.
"I’m concerned Californians will … be unprepared for the rapid gas spike in 2025, which could be an additional 90 cents per gallon," said state Senate Minority Leader Brian Jones.
The law prohibits schools from enacting policies that require parental notification if their child changes their gender identity.
In December remarks to FOX-11, bill sponsor Assemblyman Chris Ward said "politically motivated attacks on the rights, safety, and dignity of transgender, nonbinary and other LGBTQ+ youth are on the rise nationwide, including in California."
Ward, D-San Diego, said school districts had wrongly adopted policies to "forcibly out" students and that parents should love their children unconditionally in all cases.
Immigrant health insurance coverage requirements
A 2022 bill relating to health insurance coverage for Coloradans regardless of immigration status will take effect next month, according to the Denver Post.
HB-1289 requires the state to provide "full health insurance coverage for Colorado pregnant people who would be eligible for Medicaid and the children's basic health plan (CHIP) if not for their immigration status and continues that coverage for 12 months postpartum at the CHIP federal matching rate," according to the bill text.
Abortion
As of July 2025, Delaware colleges will be required to provide emergency abortion access and contraception or direct the patient to an external facility, according to the Wilmington News-Journal.
A law is also primed to take effect in the First State that mandates insurance coverage and eliminates deductibles for abortion procedures, according to multiple reports.
State Sen. Bryant Richardson, R-Blades, ripped the new law after it passed the legislature earlier in 2024.
"This is a procedure you want my tax dollars to pay for. I’m sorry, I think this is evil," he said.
Stop light
Washington, D.C., will institute a ban on right-turns-on-red within District boundaries. The law is a rare regulation in a blanket context, with New York City being one of the few other major cities with a similar law.
Signage denoting the otherwise tacit law is typically posted when entering New York City from highways like Major Deegan or one of the city's many river crossings, but it is often lacking on the hundreds of small streets on the grid that traverse into Westchester or Nassau Counties.
In the same vein, the District of Columbia reportedly lacks funding for signage on most of the streets entering the nation’s capital from Maryland or Virginia, which may or may not affect enforcement, according to reports.
The $385,000 in district funds allocated to notifying residents and drivers of the law was never identified, a DDOT official told WTTG.
Bird watch
D.C.’s Migratory Local Wildlife Protection Act of 2023 imposes a new building restriction as of Jan. 1.
Permit applications or glazing alterations will require bird-friendly materials on exterior walls and fenestration within 100 feet of grade level, according to WTTG.
The district is also one of a handful of places where the sales tax will see an increase. In the capital’s case, it will rise to 6.5%.
Firearms
Minnesota will institute a ban on "binary triggers" on personally owned weapons, according to reports. That is, the function that allows a gun to fire multiple rounds with one press of the trigger.
Vaping ban
The Ocean State is set to enact a ban on sales of and possession-with-intent-to-sell flavored vape products in 2025. The law is currently facing litigation but will be able to preliminarily go into effect, according to the Providence Journal.
Global warming
Vermont’s Global Warming Solutions Act, which initiates limits on greenhouse gas emissions, will take effect in the New Year.
It requires a 26% reduction in 2025 emissions reduction versus 2005 levels, according to the Vermont Public.
The law, however, also opens the state up to legal action from green groups and more if it fails to reach the required reduction level.
That aspect led Republicans to question the new law. Gov. Phil Scott vetoed the bill in 2020, saying it does not propose or create a good framework for "long-term mitigation and adaptation solutions to address climate change."
Meanwhile, Vermont Republican Party Chair Paul Dame recently said it opens up the state and taxpayers’ money to undue risk from such lawsuits.
"These goals were unattainable given the currently available technology, but now the state is getting dragged in to court for completely avoidable reasons," Dame told Fox News Digital.
No coal in your stocking
Oregon’s HB-4083 will direct the state onto a path toward divesting in coal firms and market instruments that include coal interests.
The laws that weren't
With many states, like those above, enacting tax hikes, new regulations and the like, Republicans in states with divided government are expressing cautious optimism that their trend of bucking liberal legislative interests can continue.
While Vermont’s Scott has seen key vetoes like the Global Warming Solutions Act overridden by the Democrat-dominated legislature, some states have the opposite dynamic where a Republican-majority chamber stymies the goals of Democrats.
With the state Senate in Republican hands, the State House one vote short of a 50-50 split and the governorship held by Democrats, Republicans expressed relief that legislation such as a 100% carbon-neutral 2050 Clean Energy Standard did not make it to Gov. Josh Shapiro’s desk.
In the gun control realm, both an assault weapons ban and proposed repeal of the state Stand Your Ground Law drafted by state Sen. Steve Santarsiero, D-Bristol, died in the legislature.
"It is time we take an evidence-based approach to our gun policy. ‘Stand Your Ground’ laws encourage gun violence. As such, it is time that we repeal ‘Stand Your Ground’ here in Pennsylvania," Santarsiero said in a memo.
Another bill enacting a firearms "Red Flag Law" languished through the legislative term.
A policy that would fund cost-free telephone calls from state prisoners also did not make it through, as did a bid for an "abortion protection package."
Those and several other top-line "draconian" bill failures are a product of GOP persistence, said state Sen. Doug Mastriano, R-Gettysburg.
"With a Democrat governor and Democrat House, the state Senate is the last line of reason to prevent Pennsylvania from becoming like California," the 2022 Republican gubernatorial nominee told Fox News Digital on Monday.
"There has been a litany of extreme legislation coming from Democrats."
As chair of the Emergency Preparedness committee, Mastriano added that the "most egregious" no-pass in 2024 was legislation to address Pennsylvanian effects from the biohazardous East Palestine, Ohio, train derailment.
Mastriano, along with state Sens. Elder Vogel Jr., R-Beaver, and Michele Brooks, R-Pymatuning, drafted legislation in July to exempt disaster relief payments from state taxes in one case.
That bill did not make it out of the legislature.
Republicans in the state also lamented the failure of the latest effort to withdraw Pennsylvania from a national "RGGI" Greenhouse Gas pact entered into by former Gov. Tom Wolf.
"Leaving our environmental and economic destiny to the whims of RGGI’s New England states is just bad policy for Pennsylvania," State Sen. Gene Yaw, R-Williamsport, said after the Senate approved the eventually-failed bill.
"It is time to repeal this regulation and focus on putting forth commonsense, environmentally responsible energy policy that recognizes and champions Pennsylvania as an energy producer."
"Pennsylvania’s greatest asset is our ability to produce energy," State Senate Majority Leader Kim Ward, R-Latrobe, added in a statement.
Minimum wage hikes are also primed to take effect in several states.
Washington, Connecticut and California are set to see $16 per hour or higher as the minimum wage for most workers. Rhode Island's will rise to $15, Maine's to $14.65, Illinois to $15 and Vermont will go to $14.
More than a dozen states, including Wyoming, Pennsylvania, Georgia, Utah, Tennessee and Mississippi, retain the federal minimum wage of $7.25.
The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.
If you're unmarried and have a qualifying dependent, you can file taxes using the head of household status.
Dragana Gordic/Shuttershock
Head of household is a federal filing status for unmarried taxpayers with qualifying dependents.
Single parents and caregivers may be eligible to file as head of household.
They get a bigger standard deduction than single filers and often lower tax rates.
Your filing status is one of the most important decisions you make when you do your taxes each year. For unmarried individuals who have dependents, filing as head of household rather than single could lead to big tax savings.
What is the head of household filing status?
All taxpayers must choose a filing status on their federal tax return, Form 1040. The options are single, married filing jointly, married filing separately, head of household, and qualifying surviving spouse.
The head of household filing status is for unmarried taxpayers who are financially responsible for a dependent, says Rachael Burns, a certified financial planner whose California-based firm, True Worth Financial Planning, services divorcées and widows.
“Divorced or otherwise single parents are great examples of someone who may benefit from the head of household status,” she says.
In 2021, the latest year for which IRS data is available, only 13% of taxpayers — about 21.2 million people — filed as head of household, and most had low to moderate income. More than 9 in 10 head of household filers made less than $100,000 and 7 in 10 made less than $50,000.
Importance of choosing the correct filing status
Your filing status determines the size of your standard deduction and which tax brackets you use. Your status doesn’t have to be the same from year to year, so consider consulting with a tax professional if you’ve experienced a divorce, birth, or other household change that may impact who you claim as a dependent.
“Your filing status impacts how much tax you pay, so it’s important you choose the one that’s best for you,” Burns says. If you qualify for the head of household filing status, it can help you unlock lower tax rates and a bigger standard deduction than filing single, she adds.
Filing status also helps determine your eligibility for tax credits and deductions, since different income thresholds and phase-outs apply for each status.
Quick tip: The IRS offers an online tool to help taxpayers choose the correct filing status.
Eligibility requirements
Marital status
Taxpayers have to be single, legally separated, or divorced by December 31 to use the head of household filing status. If you were still legally married, you may be able to qualify if you and your spouse lived separately for the last six months of the year. Otherwise you’ll need to choose married filing jointly or married filing separately.
Maintaining a home
Head of household filers must prove that they paid more than 50% of the cost of maintaining a home for a dependent during the year, says Derrick Doerr, a CPA and vice president at financial-services firm Nepsis in Minneapolis. That can include expenses like groceries, rent or mortgage payments, and utilities.
Qualifying dependents
Lastly, the qualifying dependent needs to live with the taxpayer for more than half of the year.
“There is a wide range of dependents that can qualify,” Doerr says, including foster children, stepchildren, adopted children, minor or adult siblings, and grandchildren. A parent can also qualify as a dependent but does not need to live with the taxpayer.
Tax benefits of filing as head of household
Higher standard deduction
A standard deduction is available to every taxpayer who does not itemize their deductions.
Head-of-household filers receive a standard deduction that’s larger than single filers but smaller than married joint filers. The amounts are adjusted each year to reflect cost-of-living changes.
Filing status
Standard deduction for 2024 (taxes you file in 2025)
Standard deduction for 2025 (taxes you file in 2026)
Single
$14,600
$15,000
Married, filing jointly
$29,200
$30,000
Head of household
$21,900
$22,500
Lower tax rates
The same income tax rates apply to all filing statuses, but the bands of income for each one vary.
In general, head of household filers have more leeway than single filers — meaning they can earn more than single filers before jumping to the next highest tax rate.
For example, a single filer with taxable income of $60,000 would have a marginal tax rate of 22%, while a head of household filer at the same income level would have a top tax rate of just 12%. As a result, the head of household filer’s tax liability is about $1,380 lower than the single filer’s with the same income (before any credits are applied).
For incomes above about $100,500, the tax brackets for both tax statuses are virtually the same.
Rate
Single
Head of household
10%
$0 to $11,600
$0 to $16,550
12%
$11,601 to $47,150
$16,551 to $63,100
22%
$47,151 to $100,525
$63,101 to $100,500
24%
$100,526 to $191,950
$100,501 to $191,950
32%
$191,951 to $243,725
$191,951 to $243,700
35%
$243,726 to $609,350
$243,701 to $609,350
37%
$609,351 or more
$609,351 or more
Credits and deductions
Head of household filers may be eligible for credits that help offset the cost of caregiving, such as the Child Tax Credit or the Child and Dependent Care Credit. The Earned Income Tax Credit is available to all filing statuses, but those with children can get a larger amount.
For 2024 taxes, the Child Tax Credit is worth up to $2,000 per qualifying child. The maximum income you can have to qualify for the credit ($200,000) is the same for all filing statuses, except married joint filers ($400,000). Up to $1,700 of the credit is refundable.
There’s no maximum income threshold for claiming the Child and Dependent Care Credit, which allows you to write off some expenses associated with the care of a child under 13 or a dependent of any age who is mentally or physically disabled. Once your adjusted gross income, or AGI, reaches $43,000, regardless of filing status, your maximum credit is either $300 for one qualifying dependent or $600 for two or more.
How to claim head of household status
Gathering necessary documentation
Filing taxes as head of household can be more involved than filing as single. You’ll need to provide supporting documents to confirm your marital status and the eligibility of your dependent.
To prove qualifying dependency status, you need to provide the following with your tax return:
Birth certificates or other official documents of birth or letters that verify your relationship
School, medical, daycare, or social service records that verify your address is the same as the dependent (unless they are your parent)
To prove that you paid 50% or more of the costs of keeping up a home for your dependent, attach:
Rent receipts
Utility bills
Grocery receipts
Property tax bills
Mortgage statements
Repair bills
Common scenarios and examples
Single parents
A person who has sole legal and physical custody of a child (also known as the custodial parent) will typically qualify for head of household status. The child can also be a stepchild, foster child, or adopted child.
Divorced or separated individuals
Divorces where children are involved can make filing taxes a bit tricky. Generally, only one parent can file as head of household in a given tax year and also claim deductions and credits for the dependent.
“If you have multiple children with your ex, there’s a possibility that both parents can file as head of household,” Burns says. Each parent must pass the residency and support tests for each dependent they claim.
Supporting relatives
Nieces, nephews, siblings, grandchildren, parents, step-parents, and in-laws may all be considered qualifying dependents for purposes of the head of household filing status.
The same residency and relationship tests apply as for children of the taxpayer, but there’s an exception for parents: They do not need to have lived with you, but you must still have covered at least 50% of the cost of keeping up a home for them, including nursing care or a retirement home.
Potential challenges and how to overcome them
Proving eligibility
Doerr says there may be an increased audit risk for those filing as head of household versus single. Be prepared for the IRS to ask for additional financial records or verification.
“Head of household definitely can draw IRS scrutiny and the IRS can definitely scrutinize claims, especially in the case of divorce or shared custody, requiring you to provide detailed documentation,” Doerr says.
Understanding the rules
If you’re unsure whether you qualify for head of household status, consult with a tax advisor. And if you’re dealing with an ex-spouse, be sure to communicate about your tax-filing plan before either party files.
Estimate your taxes
FAQs about filing as head of household
Can I file as head of household if my spouse and I are still married?
Yes, you can file as head of household if you are legally separated but still married and have a qualifying dependent. You can also file as head of household if you're still married but live separately for the last six months of the year. Ex-spouses cannot, however, claim the same child in the same tax year.
What counts as maintaining a household for head of household purposes?
Maintaining a household for head of household purposes means providing more than 50% of the cost of housing, food, and other essential expenses.
How do I know if my dependent qualifies me for head of household?
Your dependent can qualify you for head of household status if they lived in your home more than half the time, and you paid more than half the cost of keeping up the home.
What should I do if my filing status is challenged by the IRS?
If your filing status is challenged by the IRS, it is likely related to your dependent. Be prepared to provide additional records or receipts to prove that you financially supported and housed the dependent for more than half of the year.
Are there any exceptions to the general head of household rules?
Yes, there is an exception to the general head of household rules: A parent can be a qualifying dependent even if they didn't live with you. But you must have paid at least 50% of the cost of maintaining their primary home, whether that's a nursing home, retirement community, or another living situation.
The offers and details on this page may have updated or changed since the time of publication. See our article on Business Insider for current information.
Certain types of investments, including municipal and Treasury bonds, are tax-exempt, but you still have to report them on your tax return.
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Tax-exempt interest comes mainly from municipal bonds and U.S. Treasury bonds.
Interest from Treasury bonds, bills, and notes is federally taxed.
Muni bond interest is not federally taxed and may be exempt from state and local taxes.
There are plenty of reasons to buy bonds. Many investors are attracted to municipal bonds and U.S. Treasury bonds, in particular, for their tax-exempt status.
"Individuals are always looking for a return on principal, and so tax-exempt interest is a very appealing item to individuals, especially those who live in zero-income-tax states," says Danny Moore, a certified public accountant and managing partner of tax at Galway Family Office.
Tax-exempt interest refers to interest that's excluded from your gross income calculation at the federal level, the state/local level, or both. Here's how it works.
Tax-exempt interest from municipal bonds
What are municipal bonds?
Municipal bonds, or muni bonds, are typically issued by state and local governments and U.S. territories. They finance government operations and projects, such as building schools or restoring roads.
The two main types of muni bonds are revenue and general obligation. Revenue bonds can be slightly riskier because repayment relies on revenue from a specific project or source. Repayment of general obligation bonds comes from the issuing state or local government, which can raise taxes to pay off the bonds if needed.
Tax advantages
Usually, bondholders receive two interest, or coupon, payments a year, which are not subject to federal income tax. After a set period of time, bondholders receive their original investment back.
Investors can buy muni bonds from the state or locality in which they reside, or from another state or locality. Typically interest income from muni bonds — or muni bond funds — issued by your home state is not taxable there.
Risks and considerations
Your muni bond interest income may not be fully tax-exempt at home if you buy an out-of-state bond, says Derrick Doerr, a CPA and vice president at financial-services firm Nepsis in Minneapolis.
State rules vary, but generally, the interest you earn from an out-of-state bond can trigger taxes in your home state. Exceptions include Washington D.C. and some states with no income tax, such as Florida.
Also, Doerr notes, "Municipal bonds are generally low risk, but not risk-free." One risk is that muni bonds can be called early by the issuer. This often happens when interest rates fall, and can leave an investor choosing from lower-paying alternatives.
If you're a high earner, there's something else to consider: Interest from private activity bonds, a type of muni bond issued by a private business and not a government entity, may not be tax-exempt if you pay the Alternative Minimum Tax (AMT). AMT may apply to individuals with incomes over $609,350 or married couples filing jointly with incomes above about $1.2 million.
Note: The U.S. Securities and Exchange Commission recommends reading official statements and disclosures from bond issuers and reviewing trade prices of municipal bonds you are considering buying.
Tax-exempt interest from U.S. Treasury Securities
What Are U.S. Treasury Securities?
Tax-exempt interest income can also come from U.S. Treasury Securities. Interest is paid semiannually and subject to federal taxation, but exempt from state and local taxes.
Treasurys are backed by the federal government and are categorized by their maturities, or how long it takes to return your original investment (principal). Bills mature within a year, notes mature within 10 years, and bonds mature in 20 or 30 years.
Treasury Inflation Protected Securities (TIPS) are a type of Treasury bond that protects your investment from inflation. They're available in terms of five, 10, or 30 years. The interest rate is fixed, and semiannual payments are only federally taxable, but your principal can fluctuate.
Interest earned from Series EE and Series I Savings Bonds are also exempt from state and local taxes. Interest, which is collected at maturity or whenever you cash the bond, could be exempt from federal taxation if you use the proceeds for qualified higher education expenses, though several rules apply.
Tax advantages
Treasurys produce fixed interest that's not subject to state or local taxes, offering predictable income for bondholders.
For T-bonds, bills, and notes, you have to include the interest in your federal gross income each year that you collect it. For savings bonds, interest isn't paid until the bond is redeemed, so you have the choice to pay federal taxes on it in the year you collect or spread it out over the life of the bond.
Risks and considerations
Treasurys are the closest thing to a risk-free investment since they're backed by the full faith and credit of the federal government. But you still owe federal taxes on the interest income.
Much of the risk associated with Treasurys is in how long they take to mature. Interest rates are fixed for the life of the bond, which can be as high as 20 or 30 years for bonds or up to 10 years for bills. If interest rates rise on newly issued Treasurys, the value of existing bonds drops. This is referred to as interest rate risk.
If rates go up and you decide to sell a bond before its maturity date, you may experience a significant loss because there's less demand for lower-yield bonds. If you hold on to the bond, you may be losing out on a higher-return investment.
Tax-exempt interest from other investments
Other types of investments may produce a kind of tax-exempt interest or return. For example, investment gains in a 529 college savings plan are not taxable at the federal or state levels if the funds are used for education.
Similarly, some might consider Roth IRAs a tax-exempt investment, since the accounts are funded with posttax dollars, which grow tax-free and can be withdrawn penalty- and tax-free under certain circumstances, such as reaching age 59 and a half.
Taxable interest vs. tax-exempt interest
Many corporate bonds have higher advertised interest rates than tax-exempt bonds, but the interest is fully taxable. It can seem like a no-brainer, then, to opt for a bond that gives you a tax break over one that doesn't.
But, Moore says, "It's not just a federal tax-free amount" with municipal bonds. "You have to look at the states and you have to look at somebody's complete tax picture to see if it makes sense."
When comparing bonds, investors need to find the tax-equivalent yield of their bond options to see which produces a higher after-tax return, says Doerr. A specialized calculator, like this one from Fidelity, can help crunch the numbers.
And although the IRS (and many state governments) exempt certain interest income from the computation of income tax, those amounts may later be added back in other situations.
For federal income tax calculation purposes, tax-exempt interest is added back to figure your modified adjusted gross income, which is a crucial figure that determines deductible contributions to traditional IRAs, eligibility for a Roth IRA, and qualification for education credits, healthcare credits, and the Child Tax Credit. It's also used to figure out how much of your Social Security benefits are taxable.
Estimate your taxes
FAQs about tax-exempt interest income
Is interest from my savings account tax-exempt?
No, interest from savings accounts isn't tax-exempt. You'll get a 1099-INT from your bank with the amount of interest earned during the year, which should be included in your gross income.
Are dividends from stocks tax-exempt?
Dividends from stocks and generally not tax-exempt. Qualified dividends are taxed at capital gains rates (0%, 15%, 20%), while nonqualified dividends are taxed at ordinary rates (10%, 12%, 22%, 24%, 32%, 35%, 37%).
How do I report tax-exempt interest on my tax return?
Tax-exempt interest is reported on Line 2a of your Form 1040. You'll find the amount of tax-exempt interest you earned in Box 8 of your 1099-INT. Reporting the interest is required, but doesn't make it taxable.
The rich can use private-placement life insurance to save tens of millions of dollars.
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The richest of the rich can use life insurance to avoid estate and income taxes.
Private-placement life insurance is perfectly legal — unless a new bill passes.
A financial advisor tells Insider how the insurance saves the wealthy tens of millions of dollars.
Life insurance is probably the least sexy area of financial planning. But for the richest of the rich, policies can slash tens of millions of dollars off their tax bills.
Private-placement life insurance is a little-known tax-avoidance tactic. When structured correctly, PPLI policies can be used to pass on assets from stocks to yachts to heirs without incurring an estate tax.
"In the US, people sell life insurance as a middle-class way of structuring assets," Michael Malloy, a wealth advisor who has specialized in PPLI for 20 years, told Business Insider in 2022. "But PPLI is a completely different animal."
The PPLI industry enables a few thousand ultra-rich American taxpayers to shelter at least $40 billion, according to an investigation by the Senate Finance Committee. The report estimated that the average PPLI policyholder is worth well over $100 million.
PPLI is legal—for now. On December 16, Oregon Sen. Ron Wyden released a draft bill to close the loophole. Under the Protecting Proper Life Insurance from Abuse Act, PPLI policies would be treated as investment funds, not life insurance or annuity policies, which would eliminate the tax benefits.
"Life insurance is an essential source of financial security for tens of millions of middle-class families in America, so we cannot have a bunch of ultra-rich tax dodgers abusing its special tax treatment to set up tax-free hedge funds and shelter oodles of cash," Wyden said in a written statement.
While tax savings are the primary draw of PPLI for US clients, those in the Middle East or Latin America are often looking to use trusts to conceal information about specific assets from corrupt governments, Malloy said.
"Clients don't want an organized crime ring bribing an underpaid tax official to get information on their family," he said.
US taxpayers are required to report to the IRS only the cash value of a foreign life-insurance policy, not the assets within the trust.
These offshore life insurers in jurisdictions such as the Cayman Islands and Bermuda typically require at least $5 million as the upfront premium. Malloy advises that clients have at least $10 million in assets to make PPLI worthwhile. His clients usually hold at least $50 million in assets.
Here is how PPLI works
In short, an attorney sets up a trust for a wealthy client. The trust owns the life-insurance policy that's created offshore.
The PPLI policy premiums are funded with assets. The assets must be diversified — typically with at least five different asset classes — and can include stocks and business interests, as well as tangible assets like yachts and real estate.
Depending on the client's age, nationality, and other factors, the death benefit can, in theory, max out at $100 million, Malloy said.
If structured correctly, the benefit and the assets in the policy are passed to the children without incurring an estate tax. A 40% federal estate tax applies to estate values topping $13.61 million for individuals and $27.22 million for married couples.
Unlike with policies from US insurers, clients can cancel their policies without paying a massive surrender fee. The assets also grow within the trust tax-free. The cash value of the PPLI policy assets is held in a separate account, and this cash can be disbursed to the policy holder or invested. Investing in hedge funds is a popular use of PPLI assets.
But there's a catch. Policyholders have limited control over investment decisions. They cannot give directives to the asset manager to buy a certain number of shares in Apple, for instance.
It also requires a small army of professionals, including trust and estate attorneys, asset managers, custodians, and tax advisors. Since PPLI is relevant only to the ultrawealthy, few in wealth management or law are familiar with it.
"There's no questions on the CPA exam or the bar exam about PPLI, and asset managers are kind of skeptical," he said. "They think you're going to take assets away. Actually, the assets become stickier and get more alpha because the client pays less tax."
How the proposed bill would endanger PPLI
Under Wyden's proposed legislation, most PPLI policies would be classified as "private placement contracts" (PPCs) rather than life insurance policies. As such, any accumulated earnings and death benefits would be taxed.
The bill would apply to future and existing PPLI policies, giving policyholders 180 days to liquify the assets or transfer them. Insurers who dare to issue or reinsure the policies will no longer have the benefit of secrecy. To better enable the IRS to enforce the bill, insurers will have to report all PPCs or face a $1 million fine for each 30-day period that they fail to do so.
The bill faces steep odds of passing with Donald Trump's reelection and a Republican House and Senate. The insurance industry is counting on it.
"This legislation is an attack on all forms of permanent life insurance and, by extension, an attack on holistic financial planning," said Marc Cadin, CEO of trade group Finseca, in a statement. "We look forward to working with the new Congress and the Trump administration to advance policies to move our country forward rather than raising taxes on life insurance."
Virginia Gov. Glenn Youngkin, a Republican, is pushing to eliminate taxes on tips ahead of the commonwealth's next legislative session.
This proposal would return an estimated $70 million annually to the pockets of Virginia workers, Youngkin's office said Monday in a press release.
An end to taxes on tips could help more than 250,000 people in Virginia who work within the food service industry, the personal service industry such as hairstylists, the hospitality industry and others who receive tips through their employment in other industries.
"We have delivered over $5 billion in tax relief to date, and we remain committed to lowering the cost of living for hardworking Virginians. It’s their money, not the government’s," Youngkin said in the release.
"By removing tips from taxable income, it will directly increase the take-home pay of hundreds of thousands of Virginians and give them more buying power, which in turn will improve financial stability, stimulate local economies, and honor the value of their hard work," he continued.
Virginia workers who earn tips would be able to claim a deduction on their state tax return if the income is included in their federal adjusted gross income, the release said.
"This is way to keep more money in their pocket as opposed to giving it to a government. We’re already running surpluses and therefore, no taxes on tips is going to become the manta in Virginia," Youngkin said Monday during an appearance on Fox News' "America's Newsroom."
The governor's proposal echoes President-elect Trump’s call during his campaign to end taxes on tips. Vice President Harris also expressed support for eliminating taxes on tips during her presidential campaign.
The proposal comes ahead of the start of Virginia's legislative session next month. It would require approval from the commonwealth's General Assembly, and it is unclear if Democrats, who control both chambers, would support Youngkin's proposal.
Next year, Virginia's gubernatorial race will be held, where Lt. Gov. Winsome Earle-Sears, a Republican, is expected to face off against U.S. Rep. Abigail Spanberger, a Democrat.
Several economic experts panned New York Gov. Kathy Hochul’s "inflation refunds" she plans to distribute to qualifying New Yorkers as part of her 2025 State of the State initiative.
Last week, Hochul proposed $3 billion in direct payments to about half of the Empire State’s 19 million residents: $300 for single taxpayers making up to $150,000 per year and $500 for joint filers making twice that.
"Because of inflation, New York has generated unprecedented revenues through the sales tax — now, we're returning that cash back to middle class families," Hochul said in a statement announcing the proposal.
However, some economists and economic experts, like Andy Puzder, said the move simply "redistributes [money] to people so the people will vote for them."
"If you really wanted to help everybody, and if you have an excess of sales taxes, then you reduce the sales tax," added Puzder, the former CEO of the parent company of Hardee’s and Carl’s Jr., CKE Restaurants. "It’s not difficult math," he added.
Puzder is a lecturer on economics and a senior public policy fellow at Pepperdine University who was considered for Labor secretary in the first Trump administration.
In his work at CKE Restaurants, Puzder increased the average franchise sales volume for the then-struggling Hardee’s from $715,000 in 2001 to more than $1 million a decade later.
The U.S. economy has been in trouble because of the same types of policies forwarded by Hochul and other tax-and-spend Democrats, he said – adding that President Biden’s American Rescue Plan was what lit the fuse on nationwide inflation in the first place.
"If you reduce taxes, fewer people will also be leaving the state," he added, as New York shed another population-based House seat and electoral vote in the decennial census.
Puzder noted a few top Democrats have warned their own leaders against such "refunds" from the government, citing former President Bill Clinton’s Treasury chief Lawrence Summers cautioning the Biden administration that similar handouts in 2021 would drive up inflation.
Former Rep. Dave Brat, R-Va., an economist and currently vice provost of Liberty University in Lynchburg, cited Nobel laureate Milton Friedman’s assertion that inflation is a monetary phenomenon.
Therefore, he said, in Hochul’s case, the better fix for inflation lies not in Albany, but in Manhattan.
"Inflation has to do with how much money the Federal Reserve prints. If she wants to give people money back from the government, that’s fine – but she’s in a prominent position in New York in that the Fed has one of its chief desks there and if you want to solve inflation, you go to the Federal Reserve."
He added that $500 for a family is a "trivial, symbolic move against a massive, hidden tax," noting that with an estimated 22% real-inflation rate over the past four years, $500 in 2020 purchasing power is only worth $390.
Brat added that Democrats’ penchant for such "refunds" put Republicans at a consistent political disadvantage because the GOP essentially has to "compete against Santa Claus" handing out presents versus the right warning the public to "eat their spinach."
Economist EJ Antoni echoed some of the sentiment about the refunds being inflationary themselves, saying that what got the U.S. into inflation in the first place was too much government spending.
"So this idea that we're going to add on another government expenditure, you're essentially just creating a feedback loop," Antoni said.
"Now, that's not to say that New York State alone is going to cause inflation. Inflation comes from the federal government, because the federal government is the one that can't create money, can print money out of nothing. But at the same time, you're still talking about increasing the cost of living for New Yorkers, just in a different way," he said.
"Any additional government spending is going to have to be paid for one way or another."
Antoni added he could see such payments to the public "snowballing" into more and more payments down the line, which in turn would lead to higher taxes being needed to fund the handouts.
Antoni also said Hochul’s proposal differs from then-President Donald Trump’s COVID-era checks, because the latter came during a time people needed "money to survive" amid stay-at-home orders and various shutdowns of job sectors.
"If the issue is that we need to reduce people's cost of living, the best way to do that would just be to reduce their taxes, not have another payment by the government," he said.
Fox News Digital also reached out to the left-leaning Brookings Institution for a further diverse viewpoint on Hochul’s move.
Fox News Digital also reached out to Hochul's office for comment but did not receive a response by press time.
GOP lawmakers are framing the IRS's free direct tax filing system as an example of the "weaponization of government against Americans."
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The IRS has gradually rolled out a program to allow Americans to directly file taxes with the IRS.
It's designed to make filing taxes simpler and easier.
A group of Republicans want Trump to end it, saying it's government overreach.
More than two dozen House Republicans are asking President-elect Donald Trump to terminate the Internal Revenue Service's (IRS) free direct tax filing system as soon as day one of his presidency.
Republican Reps. Adrian Smith of Nebraska and Chuck Edwards of North Carolina sent a letter to the president-elect on Tuesday urging him to end the program via executive order, saying that the program poses a "threat to taxpayers' freedom from government overreach."
The letter was signed by 27 other Republicans and is also addressed to Elon Musk and Vivek Ramaswamy, the co-leads of DOGE.
The program came about as the result of the Inflation Reduction Act, which included $15 million in funding to study the creation of a website allowing Americans to directly file their taxes to the IRS for free. That led to the rollout of a pilot program that was available in 12 states last year, and is set to expand to 24 states in 2025.
A spokesperson for the IRS did not immediately respond to a request for comment.
Many Americans rely on tax-prep companies like TurboTax and H&R Block to do their taxes each year. The new program is designed to compete with those programs and make filing easier and less costly for Americans.
Smith and Edwards argued in their letter that the program represents a conflict of interest for the IRS — that the agency should not be in charge of both assessing taxes and enforcing tax crimes. The duo wrote that the agency "has little incentive to ensure hardworking Americans do not pay more than they owe in taxes."
They also cast the free direct-file program as an example of the "weaponization of government against Americans," a long-standing focus of Trump and MAGA-aligned right.
It is unclear whether Trump will take the lawmakers up on their request, and the Trump-Vance transition did not immediately respond to Business Insider's request for comment.
Republicans have broadly sought to roll back the $80 billion in additional funding for the IRS that was included in the Inflation Reduction Act, saying it will be used to enable the agency to target conservatives and ordinary taxpayers.
New York Democratic Gov. Kathy Hochul announced the first initiative of her 2025 State of the State plan: up to $500 in "inflation refunds" for New Yorkers dealing with spiking costs-of-living in the Empire State.
The proposal would take $3 billion in "excess" sales tax revenue that had been "driven by inflation" and return the money to nearly half of the state's population.
Families making less than $300,000 would be eligible for $500, and individual taxpayers making less than $150,000 would receive $300 under the plan. The governor's office said the announcement is one of several proposals aimed at lessening the burden on New Yorkers' cost-of-living.
"Because of inflation, New York has generated unprecedented revenues through the sales tax — now, we're returning that cash back to middle class families," Hochul said in a statement Monday.
"My agenda for the coming year will be laser-focused on putting money back in your pockets, and that starts with proposing Inflation Refund checks of up to $500 to help millions of hard-working New Yorkers.
"It's simple: the cost of living is still too damn high, and New Yorkers deserve a break," said Hochul, offering a sentiment similar to that repeated by perennial candidate and Rent is Too Damn High Party founder Jimmy McMillan.
However, New York Republicans were not as receptive to Hochul's plan, as NYSGOP Executive Director David Laska told Fox News Digital the governor appeared simply out to make friends rather than bring about long-term relief.
"With her approval rating deep underwater, Kathy Hochul is resorting to bribing New Yorkers to like her," Laska said.
"Handing out one-time checks won’t stop the crushing inflation Democrats’ policies have fueled – it will only add to it. New York needs real, permanent solutions: relief from our highest-in-the-nation tax burden and a rollback of job-killing regulations."
New York City Council Minority Leader Joe Borelli claimed that the $300 offered to middle- and low-income residents would still be less than what is spent on each migrant daily.
"[That] is not that backslapping win the governor thinks it is," said Borelli, R-Staten Island.
Borelli added that the plan "looks increasingly silly" in the face of Hochul's successful push for congestion pricing and her borrowing "costly energy cues from the Greta Thunberg School of Energy Policy."
"Newsflash for Kathy Hochul," added Rep. Michael Lawler, R-N.Y., "Taking thousands of dollars out of New Yorkers’ left pocket and then putting $500 in their right pocket isn’t a tax cut, it’s an insult."
State Sen. Rob Ortt, R-Niagara Falls, said that Democrats like Hochul continue to make New York State more expensive despite pleas for relief.
"The governor's mindset is promising, however words are words," said Ortt, the top Republican in the chamber.
Ortt claimed that it is his caucus that is the true voice for hardworking New Yorkers seeking "real affordability… not just one-shot gimmicks."
Meanwhile, Rep. Nicole Malliotakis, R-N.Y., said Albany needs to "stop treating New Yorkers like bottomless ATM machines" with their new tolls and tax hikes.
Malliotakis' constituents now face an extra $9 "congestion" toll to enter Lower Manhattan, on top of an approximate $20 round-trip cost to commute on the state-owned Verrazzano Bridge.
"If she’d allow her constituents to keep more of their hard-earned money from the start, there would be no need for these ‘inflation refund’ checks to begin with."
Hochul's office estimated 8.6 million out of 19.5 million New Yorkers would benefit from the planned "refunds."
Fox News Digital reached out to Hochul for further comment on the criticisms.
President-elect Trump announced plans to impose a 25% across-the-board tariff on all imports from Canada and Mexico, effective his first day in office. But the move is largely "a diplomatic" one that draws on Trump's "war chest" to leverage U.S. interests, according to one expert.
Tariffs are taxes that governments place on goods being imported or exported. They can raise the cost of imported products, making local products more attractive to buy.
"President Trump has used tariffs effectively before, and I think we can expect him to continue using them in a targeted manner, even in areas that are not directly related to trade," Andrew Hale, Heritage Foundation's senior policy analyst, told Fox News Digital.
Hale noted that Trump's previous use of tariffs was aimed not just at trade imbalances but also at issues like border security and drug trafficking. According to Hale, Trump has consistently applied these tariffs in areas that extend beyond trade imbalances, using them as tools of diplomacy to further "America First" policies.
"Trump continues to assert American strength on the world stage, something the Biden administration has been reluctant to do, and both allies and adversaries have taken notice of this, what I would call a resurgence of U.S. leadership with Trump's return," he said.
Hale suggested that if Trump's tariff proposals were implemented, Mexico and Canada might challenge them under the USMCA, but he doubts it would reach that stage, as such measures have previously proven effective in achieving U.S. goals. Hale also speculates that Trump could use tariffs as leverage in other contexts, such as targeting countries that act against U.S. allies like Israel.
"I don't see it going that far, because it's effectively worked," he said.
During his first term, Trump renegotiated the North American Free Trade Agreement (NAFTA), replacing it with the United States-Mexico-Canada Agreement (USMCA), which went into effect July 2020. The USMCA aimed to modernize and address issues in the original NAFTA, particularly concerning labor rights, environmental standards and digital trade.
"I'm going to inform her [Mexican President Claudia Sheinbaum] on day one, or sooner, that if they don't stop this onslaught of criminals and drugs coming into our country, I'm going to immediately impose a 25% tariff on everything they send in to the United States of America," Trump said during his last North Carolina campaign stop before the election.
Hale added that Trump's success in using tariffs during the USMCA renegotiation with Canada and Mexico demonstrates their power as a diplomatic tool, as Trump has criticized the nations over trade imbalances and issues like drug trafficking as justifications for the tariffs.
"The Biden administration has not been implementing USMCA as they should, as Mexico has been violating it," Hale said.
While the tariffs aim to boost U.S. manufacturing, experts and some politicians warn they could disrupt supply chains, increase costs for businesses reliant on foreign goods, and potentially lead to retaliatory tariffs from trading partners, impacting American exporters.
On Thursday, liberal Gov. Gavin Newsom of California took aim at Trump's proposal, calling it "one of the biggest tax increases in U.S. history."
"You are being betrayed by these policies," Newsom said.
According to the Tax Foundation, the Trump administration imposed some "$80 billion worth of new taxes on Americans" in 2018 and 2019 when he slapped tariffs on $380 billion worth of products.
The Biden administration largely kept these tariffs in place and then enforced additional tax increases on $18 billion worth of Chinese goods.
Former Vice President Mike Pence came out in support of Trump's tariffs, but urged a delicate approach to balance the country's relationship with Beijing.
"I fervently hope his proposed tariffs will bring China back to the negotiating table as it did during our administration. I know this will be difficult and create challenges in the short-term, but it will be well worth it in the long-term," Pence said this week. "We want better for America and China – and I believe a firm, but fair approach is the best way to get there."
Trump also recently suggested to Canadian Prime Minister Justin Trudeau that if a tariff for failing to address trade and immigration issues would kill the neighbor to the north’s economy, maybe it should become the 51st state, sources told Fox News.
Sources say Trump became more animated when it came to the U.S. trade deficit with Canada, which he estimated to be more than $100 billion.
Fox News Digital's Caitlin McFall, Greg Wehner and Bret Baier contributed to this report.
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