Rep. Gabriel Vasquez, D-N.M., recently faced scrutiny for his position on taxation policies related to tipped workers. He voted against a package that implemented President Donald Trump’s ‘no tax on tips’ law. However, a month later, he advocated for a permanent version of this policy.
During an August statement, Vasquez emphasized the importance of enabling tipped workers to retain more of their earnings. Yet, along with fellow Democrats, he opposed Trump’s ‘Big Beautiful Bill.’ This bill became law on July 4 and included the no-tax-on-tips provision.
Rep. Gabe Vasquez, D-N.M., said, “Tipped workers deserve to take home more of their hard-earned pay.”
This stance has led to criticisms from some Republicans who accuse him of political maneuvering. A statement from Reilly Richardson, a spokesperson for the National Republican Congressional Committee, suggested Vasquez’s actions reflect a strategy to appeal to his competitive district despite opposition to the overall package.
Vasquez’s campaign explained his vote was due to other elements in the bill. Notably, reforms included an 80-hour work requirement for certain Medicaid recipients starting in 2027. Patricia Socarras Santiago, Vasquez’s campaign spokesperson, stated that Vasquez supports a policy that would not negatively impact families relying on Medicaid and food assistance.
The campaign further criticized the impact of Trump’s policies on employment, pointing to recent job reports. They argued these policies fail to ensure job stability in the hospitality sector, where inflation surpasses any gains from the temporary no tax on tips policy.
Vasquez introduced H.R. 1314, known as the TIPS Act, intending to make the no-tax-on-tips policy permanent. This act aims to abolish subminimum wages paid to most tipped workers, who in New Mexico earn a meager $2.13 per hour.
On Tax Day, Vasquez highlighted concerns that voters might be misinformed about the policy’s effects. Specifically, some workers might not qualify for the expected tax relief due to existing stipulations.
As Vasquez prepares for an election against Republican nominee Greg Cunningham, a former DEA officer, he continues to emphasize transparency and genuine solutions to economic issues affecting New Mexicans. His goal is to ensure workers and seniors retain more income, avoiding temporary fixes.