Rep. Gabriel Vasquez, a Democrat from New Mexico, recently made headlines with his voting decisions on tax policies affecting tipped workers. Despite voting against a package that upheld former President Donald Trump’s ‘no tax on tips’ law, Vasquez later advocated for the permanent implementation of this policy. He emphasized the importance of allowing tipped workers to keep more of their earnings.
In August, Vasquez expressed his support for tipped workers, stating, ‘Tipped workers deserve to take home more of their hard-earned pay.’ However, he and other Democrats voted against the package, known as the ‘Big Beautiful Bill,’ which became law on July 4 and included the no-tax-on-tips provision.
While most Democrats criticized the entire tax and border security package, Vasquez suggested extending parts of the bill as he aimed to appeal to one of the nation’s most competitive districts. Some Republicans perceived this move as an attempt to sway policy in his favor after initially opposing it.
Reilly Richardson, a spokesperson for the National Republican Congressional Committee, commented on Vasquez’s actions, saying, ‘Defund the police Gabe Vasquez wants to raise taxes, rip away benefits from workers, and make families’ lives harder.’ New Mexicans, according to Richardson, are not in favor of Vasquez’s agenda.
Vasquez’s campaign responded to criticism by explaining that he opposed specific components of the Big Beautiful Bill. One objectionable aspect was the reform of Medicaid parameters, which mandated an 80-hour work requirement for non-disabled adults aged 19-64 beginning in 2027.
Patricia Socarras Santiago, a spokesperson for Vasquez’s campaign, clarified, ‘Vasquez would have happily voted for a permanent no-tax-on-tips policy that didn’t endanger Medicaid and other crucial assistance for millions of families.’ She emphasized the challenge of maintaining job stability within the hospitality sector and suggested that Trump’s proposals were insufficient.
Vasquez criticized the Trump administration’s policies, arguing for a more expansive approach to the no-tax-on-tips provision. Highlighting the shortcomings of the current law, he pointed out that workers are still taxed on tips and overtime. The TIPS Act, which Vasquez introduced earlier, aimed to address these issues by eliminating subminimum wages.
Vasquez’s proposal would ensure that tipped workers are no longer subjected to low-end, taxable salaries. Currently, in New Mexico, tipped workers earn as little as $2.13 per hour. The bill would also make the no-tax-on-tips policy permanent, unlike Trump’s version, which is set to expire in 2028.
On Tax Day, Vasquez issued a press release, criticizing the Trump administration for misleading voters about the scope of the no-tax-on-tips policy. He noted that tax relief wasn’t as extensive as portrayed and that only businesses meeting certain criteria qualified.
‘Tax Day is challenging for everyone, and many New Mexicans might discover that they do not qualify for the promised tax relief,’ Vasquez remarked. He emphasized the need for ‘honest, lasting policies’ that genuinely benefit workers and seniors.
Looking ahead, Vasquez, who secured his party’s nomination without opposition in the primary, is preparing for the upcoming general election. He will compete against Republican candidate Greg Cunningham on November 3. In the previous election, Vasquez defeated Yvette Herrell, his Republican opponent, with 52.1% of the vote to her 47.9%.
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