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

Rep. Gabriel Vasquez, representing New Mexico, recently voted against a package that implemented former President Donald Trump’s ‘no tax on tips’ policy. Despite this, he later called for making the policy permanent. In August, Vasquez emphasized the importance of tipped workers keeping more of their earnings, stating, ‘Tipped workers deserve to take home more of their hard-earned pay.’

Democrats, including Vasquez, opposed the ‘Big Beautiful Bill’ signed into law on July 4, which incorporated the no-tax-on-tips provision. Despite general Democratic criticism of many aspects of the tax and border security package, Vasquez’s support for parts of the bill highlights his efforts to appeal to his competitive district.

‘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,’ commented Reilly Richardson, spokesperson for the National Republican Congressional Committee, to Fox News Digital.

Addressing his vote, Vasquez’s campaign stated he opposed other elements of the ‘Big Beautiful Bill,’ such as Medicaid reform imposing an 80-hour work requirement for specific adults by 2027. Patricia Socarras Santiago, his campaign spokesperson, noted, ‘Vasquez would have gladly supported a stable no tax on tips policy without cutting benefits to families and endangering rural hospitals.’

The campaign also cited job reports, highlighting the insufficiency of Trump’s proposals for maintaining job stability in hospitality. ‘The Administration’s latest jobs report today tells the truth about our tipped worker economy under MAGA leadership,’ the campaign argued, suggesting inflation outpaces any gains from a temporary no-tax policy.

Notably, Vasquez isn’t advocating for extending the current law. ‘The current sham version of ‘no tax on tips’ isn’t going to cut it,’ he said, calling for expansion. Vasquez introduced the TIPS Act, aiming to eliminate subminimum wages and make the policy permanent. Trump’s policy is set to expire in 2028, covering only a four-year period.

In a Tax Day press release, Vasquez criticized the Trump administration for misleading voters about the no-tax-on-tips provision. He noted that taxes still apply to overtime pay and only certain businesses meet criteria for the tax relief. ‘New Mexicans deserve honesty,’ he remarked, advocating for genuine solutions benefiting workers and seniors.

Following his unopposed primary win, Vasquez will compete with Republican Greg Cunningham, a veteran and DEA officer, in the November 3 general election. Vasquez previously won re-election against Republican Yvette Herrell with 52.1% of the vote.