Rep. Gabriel Vasquez, D-N.M., has drawn criticism for his voting record on a Republican-backed tax package that included a provision for tax-free tips, a policy he has since championed. Vasquez voted against the "Big Beautiful Bill" when it passed, which enacted former President Donald Trump's "no tax on tips" law. However, just a month later, Vasquez called for the permanent implementation of such a policy.
"Tipped workers deserve to take home more of their hard-earned pay," Vasquez stated in August. His vote against the bill, which became law on July 4, aligned with most of his Democratic colleagues who opposed various aspects of the package.
Vasquez's campaign stated that his opposition to the bill was due to other measures included within it, such as reforms to Medicaid parameters that would implement an 80-hour work requirement for 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 raised concerns about job stability in the hospitality industry under the previous administration's economic policies, arguing that Trump's proposals were insufficient. "The Administration's latest jobs report today tells the truth about our tipped worker economy under MAGA leadership, and it's not pretty: 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 has introduced his own legislation, H.R. 1314, the TIPS Act, which aims to make the tax-free tips policy permanent. Trump's provision is set to expire in 2028. Vasquez's bill would also eliminate subminimum wages for tipped workers, which in New Mexico is $2.13 per hour.
On Tax Day, Vasquez issued a press release criticizing the Trump administration for allegedly misinforming voters about the "no tax on tips" provision. He pointed out that taxes still apply to overtime pay and that only businesses exceeding a certain revenue threshold qualify for the policy. "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," Vasquez said.
The Republican National Congressional Committee criticized Vasquez's stance, with a spokesperson 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, representing a competitive district in New Mexico, is facing Republican nominee Greg Cunningham in the upcoming general election. He previously won re-election by a narrow margin in 2022.