Rep. Gabe Vasquez’s Stand on ‘No Tax on Tips’ Policy

Rep. Gabriel Vasquez, a Democrat from New Mexico, has made headlines by voting against a legislative package that implemented President Donald Trump’s policy of ‘no tax on tips.’ Interestingly, he advocated for the permanent implementation of this policy just a month later, highlighting a complex political stance.

In August, Vasquez expressed support for tipped workers, stating that they deserve to retain more of their hard-earned income. Despite this, Vasquez, alongside Democratic colleagues, voted against Trump’s ‘Big Beautiful Bill’ on July 4, even though it included the no-tax-on-tips provision.

“Tipped workers deserve to take home more of their hard-earned pay,” Vasquez told local outlets.

Vasquez stands out among Democrats who have criticized most aspects of the tax and border security package. His advocacy for extending portions of the bill reflects his efforts to appeal to a competitive district.

A Republican critic described Vasquez’s actions as an attempt to appear supportive of a policy he originally opposed. “Defund the police Gabe Vasquez wants to raise taxes, rip away benefits from workers, and make families’ lives harder. New Mexicans want none of Vasquez’s radical agenda,” said Reilly Richardson, spokesperson for the National Republican Congressional Committee.

Vasquez’s campaign clarified that his opposition was due to other elements of the bill, such as Medicaid reforms requiring 80-hour work weeks for non-disabled adults aged 19-64 starting in 2027. “Vasquez would have happily voted for a permanent no tax on tips policy that didn’t kick millions of hardworking families off Medicaid and food assistance,” stated Patricia Socarras Santiago, a campaign spokesperson.

The campaign also cited recent job reports to argue that Trump’s proposals did not adequately address job stability in the hospitality industry. Vasquez has been critical of temporary measures, asserting that they do not suffice in sustaining economic stability for tipped workers.

“The reality is, under the law Republicans just passed, every worker will still pay taxes on tips and overtime,” Vasquez said.

Vasquez introduced the TIPS Act (H.R. 1314) earlier in the year, aiming to eliminate subminimum wages, which often include low taxable salaries for tipped workers. In New Mexico, for instance, employees must earn at least $2.13 per hour.

Previously, Vasquez had criticized Trump’s immigration policies, describing certain measures as unwise. His language would make the no-tax-on-tips policy permanent, contrary to Trump’s bill, which expires in 2028.

On Tax Day, Vasquez released a statement highlighting his bill and criticizing the Trump administration for not fully informing voters about the no-tax-on-tips provision. He pointed out that taxes remain on overtime pay and asserted that only businesses exceeding a certain income qualify for the policy.

As Vasquez prepares for the November 3 general election against Republican nominee Greg Cunningham, his recent re-election successes suggest a robust campaign. In his previous race, Vasquez secured victory over Republican Yvette Herrell with 52.1% of the vote to her 47.9%.