Full Breakdown
Rep. Gabriel Vasquez Opposes Trump Tax Bill While Championing a Permanent No-Tax-on-Tips Policy
8/11/2026, 5:54:40 AM
The Vote on the “Big Beautiful Bill”
On July 4, Rep. Gabriel Vasquez, D-N.M., joined his Democratic colleagues in voting against President Donald Trump’s tax and border-security package, known as the “Big Beautiful Bill.” The legislation included a temporary provision that eliminated federal taxes on tips for qualifying businesses.
Vasquez’s Push for a Permanent No-Tax-on-Tips Policy
After the vote, Vasquez introduced H.R. 1314, the “TIPS Act,” to make the tip-tax exemption permanent and to eliminate the sub-minimum wage of $2.13 per hour that tipped workers in New Mexico currently receive. He argues the current four-year provision, set to expire in 2028, is insufficient and confusing for workers. In a press release around Tax Day, Vasquez warned that many New Mexicans could be surprised by the limited eligibility for the tax break and emphasized the need for “real solutions” that keep more pay and benefits in workers’ pockets.
Official Statements & Responses
Vasquez framed the existing law as a “sham” and said the temporary measure does not address overtime taxes or the income thresholds that restrict eligibility. His campaign spokesperson, Patricia Socarras Santiago, noted that Vasquez would have supported a permanent no-tax-on-tips policy if it did not jeopardize Medicaid, food assistance, or rural hospitals. The campaign also highlighted recent jobs data, arguing that the administration’s policies have not stabilized employment in the hospitality sector.
Verbatim Quotes
- “Tipped workers deserve to take home more of their hard-earned pay,” — Rep. Gabriel Vasquez
- “The current sham version of ‘no tax on tips’ isn’t going to cut it,” — Rep. Gabriel Vasquez
- “Tax Day is no one’s favorite time of year, but I worry this filing season is going to be especially frustrating for a lot of folks. Many hardworking New Mexicans may be surprised when they file and realize they don’t qualify for the tax relief they were promised,” — Rep. Gabriel Vasquez
- “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,” — Patricia Socarras Santiago, a campaign spokesperson
