Arizona Gov. Katie Hobbs promoted Arizona’s “no tax on tips” policy in a video filmed at Chili Pepper in Yuma. She said the policy allows service workers to keep every dollar they receive through tips. The video gained attention over her claim of credit for the tax change.
Hobbs shared the video on X while discussing her fourth bipartisan balanced budget. She opened the video by declaring, “No tax on tips.”
“Here in Arizona, we eliminated taxes on tips,” Hobbs said. She said the change would allow service workers to keep their full tips.
Hobbs also addressed the financial pressures facing Arizona families. She blamed high costs on what she called Washington’s “misguided policies.”
The governor said she was working to put more money into Arizonans’ pockets. She credited her latest budget with cutting taxes for working families.
Katie Hobbs Faces Arizona Backlash Over ‘No Tax on Tips’ Credit
The video prompted renewed scrutiny of Hobbs’ previous vetoes and competing claims over who secured the tax change.
One user wrote, “You vetoed it THREE TIMES. You delayed critical benefits as you drove our cost of living up. And now you’re trying to take credit for it. Ridiculous.”
Another response read, “Suddenly, you’re all for this idea… and you think we didn’t remember your track record?”
A separate user stated, “You vetoed the state bill. You are lying to Arizonians. You never supported it.”
One user credited state lawmakers, writing, “Thank you Republican Legislature for holding the line against Hobbs and Dem legislators to get this passed.”
Not every response criticized the policy itself. One user wrote, “But of course ending taxes means money in our pockets. Now do every tax on all working people. END THEM ALL.”
Another simply said, “That’s a great idea.”
Hobbs did not address the earlier vetoes while promoting the tax change. That omission leaves the dispute over her record and who deserves credit unresolved.
