Representative Gabriel Vasquez, D-N.M., a Democrat in a competitive House district, is facing criticism for his voting record on a tax policy that benefits tipped workers. Vasquez voted against the "Big Beautiful Bill," signed into law by former President Donald Trump, which included a provision to exempt tips from federal taxes. Weeks later, Vasquez called for the permanent implementation of a similar policy through his own legislation.
This legislative maneuver has drawn the attention of Republicans, who accuse Vasquez of political opportunism. "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, a spokesperson for the National Republican Congressional Committee.
Vasquez's campaign defended his vote, stating that he opposed other measures within the "Big Beautiful Bill," such as Medicaid reforms that would implement an 80-hour work requirement for certain non-disabled adults. "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," a campaign spokesperson said.
The campaign also argued that the economic conditions under Trump's administration did not adequately support job stability in the hospitality industry, suggesting that "tipped workers in fields like hospitality are losing their jobs, and inflation is outpacing any gain made by a temporary no tax on tips policy."
Vasquez's proposed legislation, H.R. 1314 or the TIPS Act, aims to eliminate subminimum wages for tipped workers, a policy that currently allows employers to pay as little as $2.13 per hour in some states. The TIPS Act would also make the policy permanent, as Trump's provision is set to expire in 2028.
In April, Vasquez stated that the existing "no tax on tips" provision under the Trump administration was a "sham version" and that "every worker will still pay taxes on tips and overtime." He further criticized the policy for potentially misleading voters, noting that not all businesses qualify and that taxes still apply to overtime pay. "Many hardworking New Mexicans may be surprised when they file and realize they don’t qualify for the tax relief they were promised," Vasquez said in a press release.
Vasquez secured the Democratic nomination unopposed and is set to face Republican nominee Greg Cunningham in the upcoming general election. He won his previous election by a margin of 52.1% to 47.9%.