Rep. Gabriel Vasquez, a Democrat from New Mexico, has publicly advocated for a permanent 'no tax on tips' policy, despite having voted against President Donald Trump’s 'Big Beautiful Bill,' which included a temporary version of this provision and became law on July 4 [1]. Vasquez stated, 'Tipped workers deserve to take home more of their hard-earned pay,' and has called for an expansion of the current law, arguing that the existing measure does not go far enough to benefit workers [1].
Vasquez’s opposition to the 'Big Beautiful Bill' was due to other measures in the package, such as reforms to Medicaid that would implement an 80-hour work requirement for non-disabled adults ages 19-64 beginning in 2027, which his campaign argued would negatively impact millions of families and rural hospitals [1]. His campaign spokesperson, Patricia Socarras Santiago, emphasized that Vasquez would have supported a permanent 'no tax on tips' policy if it did not include these additional provisions [1].
The Vasquez campaign also referenced recent jobs reports, asserting that Trump's policies have not sufficiently addressed job stability in the hospitality sector, with tipped workers reportedly losing jobs and inflation outpacing any gains from the temporary tax relief [1]. Vasquez introduced the TIPS Act (H.R. 1314) earlier in the year, which would eliminate subminimum wages for tipped workers and make the 'no tax on tips' policy permanent, as opposed to the four-year duration under the current law, which expires in 2028 [1].
Republican critics, such as Reilly Richardson from the National Republican Congressional Committee, have accused Vasquez of attempting to sway voters in a competitive district with a policy he initially opposed, labeling his actions as a political ploy [1].
CONCLUSION
Rep. Vasquez’s stance highlights ongoing debate over the scope and permanence of the 'no tax on tips' policy, as well as broader concerns about the impact of related legislation on workers and social programs. The issue remains politically charged, with both parties using it to appeal to key constituencies in battleground districts.