Rep. Gabriel Vasquez’s Stance on ‘No Tax on Tips’ Policy

Rep. Gabriel Vasquez, D-N.M., recently opposed a legislative package that enforced President Donald Trump’s “no tax on tips” policy. Despite this, Vasquez advocated for the policy’s permanent adoption shortly after his vote.

In August, Vasquez stated, “Tipped workers deserve to take home more of their hard-earned pay,” during an interaction with local media. This comment contrasts with his earlier vote against Trump’s “Big Beautiful Bill” on July 4, which included the no-tax-on-tips provision. Vasquez voted along with fellow Democrats against the bill.

The legislation has faced criticism from most Democrats, but Vasquez’s move to extend aspects of the bill showcases his strategy to appeal to a competitive district.

Reilly Richardson, a spokesperson for the National Republican Congressional Committee, criticized Vasquez stating, “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.”

Vasquez’s campaign defended his vote citing other provisions in the bill, including changes to Medicaid which would impose an 80-hour work requirement for certain adults starting 2027.

Patricia Socarras Santiago, a campaign spokesperson, explained Vasquez’s position saying, “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 and push our rural hospitals to the brink of closure.”

The campaign also pointed to job reports, arguing that the existing policies under Trump’s administration weren’t addressing job stability in the hospitality sector effectively.

Vasquez clarified his standpoint, stating, “The current sham version of ‘no tax on tips’ isn’t going to cut it.” He introduced H.R. 1314, known as the TIPS Act, aiming to eliminate subminimum wages, which are taxed on the low-end salaries many tipped workers earn. Specifically, in New Mexico, this rate is $2.13 per hour.

Trump’s no-tax-on-tips policy is set to expire in 2028 and applies only to some businesses based on earnings.

On Tax Day in April, Vasquez criticized the Trump administration for misinforming voters about the policy’s details. He emphasized that taxes on overtime pay remain and not everyone qualifies for relief.

Vasquez commented, “New Mexicans deserve honesty. Instead of confusing, temporary policies, I’m focused on real solutions that help workers and seniors actually keep more of their hard-earned pay and benefits in their pockets — not with the IRS.”

As he prepares for the upcoming general election on November 3 against Republican nominee Greg Cunningham, Vasquez, unopposed in his primary, aims to retain his seat. His past electoral victory was by a narrow margin over Republican Yvette Herrell.