Blakeman pledges tax relief for restaurants as Hochul tax fights intensify

Bruce Blakeman moved his governor’s race into restaurant territory Wednesday, promising tax relief for New York restaurants and other small businesses as Kathy Hochul’s latest tax fights sharpened in Albany and New York City. He was set to outline the pitch at Diner 24 in Gramercy Park, putting the debate in the middle of a business that still has not fully clawed back from the pandemic.

For restaurant operators, the argument is less about campaign slogans than about what actually gets cheaper. The National Restaurant Association said full-service restaurant employment in February 2026 was still 207,000 jobs, or 3.7%, below pre-pandemic levels, and its 2026 outlook points to modest growth under continued cost pressure. In practical terms, that means many dining rooms are still juggling thinner staffs, longer stretches of burnout and the same pressure to keep menu prices from climbing too fast for customers already watching every check.

Blakeman, the Nassau County executive, has framed his broader campaign around lowering taxes and restoring affordability. His pitch lands as business groups keep warning that new tax hikes would make New York less competitive, especially for smaller operators that do not have the cushion to absorb higher labor, food and occupancy costs. For a restaurant owner trying to decide whether to add one more line cook or raise appetizer prices by a dollar, the difference between broad tax relief and a campaign line can be the margin between stability and another cut in hours.

Hochul’s side of the fight has focused on high earners and second homes. Her office has backed a proposed New York City pied-à-terre tax on second homes worth $5 million or more, which it says would target wealthy part-time residents and could generate at least $500 million a year for the city. At the same time, she has warned that new taxes could push the highest earners out of New York, underscoring how the state’s tax debate has become a fight over who pays to keep the city and state afloat.

Hochul has also moved toward a state version of no tax on tips, proposing to exempt up to $25,000 in tipped income from New York state income tax for tax year 2026. That would matter directly to servers, bartenders and other tipped workers, but state and city analysts said it could reduce New York City revenue by about $239 million over four years. Hochul also signed a hospitality-support package on October 9, 2024, extending temporary permits and trimming some licensing friction, a reminder that the state has already tried to help restaurants survive. The question now is whether Blakeman’s tax relief would change hiring, hold down prices or only sharpen a campaign message in an industry still waiting for a full recovery.