Democrats Push Bespoke Tax Breaks to Woo Voters—But at What Cost?

Every time Rep. Josh Gottheimer (D-N.J.) lands at Newark Airport, he gets mad—not about the dirty terminals, Uber surcharges, or overpriced meals, but about the pro–New York merchandise on display.

“Nothing pisses me off more than when I get off an airplane here at Newark . . . and in my face is often a row of shirts in a store screaming, ‘I Love New York.’ Really? We just landed in Jersey,” Gottheimer said Monday.

For Gottheimer, the sight of “I❤️NY” hats and snowglobes at the nearby Jon Bon Jovi rest stop is unbearable. (“Makes me want to spit out my coffee,” he said.) His solution? A new tax break: the “Jersey Pride Tax Credit.”

Under the proposal, businesses would receive a 25 percent tax credit for selling New Jersey–branded products in airports, train stations, and rest stops.

Across the Country, Democrats Embrace Niche Tax Breaks

Gottheimer’s plan is part of a growing trend among Democrats to use targeted, often costly tax breaks to win voter support. Some are state-level proposals; others are federal.

State-Level Initiatives

• Georgia gubernatorial candidate Keisha Lance Bottoms wants to eliminate income taxes for teachers.
• California gubernatorial candidate Katie Porter has pledged to exempt families’ first $100,000 from state income taxes if elected.

Federal Proposals

• Rep. Marie Gluesenkamp Perez (D-WA) seeks to exempt police officers from federal income taxes on their first $100,000 of earnings.
• Sen. Cory Booker’s “Keep Your Pay Act” would eliminate federal taxes for married couples earning up to $75,000.
• Sen. Chris Van Hollen (D-MD), a potential 2028 presidential hopeful, has co-sponsored a bill with Booker to eliminate federal income taxes for households earning up to $92,000. This would erase tax obligations for about 60 percent of U.S. households, according to analyses by the Penn Wharton Budget Model and Yale Budget Lab.

From Broad-Based Taxes to Bespoke Breaks

This shift marks a departure from the Democratic Party’s past emphasis on funding ambitious domestic programs through broader tax increases. The rise of these niche tax breaks reflects a growing reliance on targeted voter incentives over sweeping policy changes.