Democratic Rep. Vasquez pushes permanent tip-tax exemption after opposing Trump bill
Rep. Gabriel Vasquez voted against the July 4 tax package that included a temporary no-tax-on-tips provision, then introduced legislation to make the benefit permanent.
New Mexico Democrat Gabriel Vasquez cast a vote against the July 4 legislation that introduced President Donald Trump’s temporary no-tax-on-tips rule, citing concerns over accompanying Medicaid reforms and hospital funding cuts. While most Democrats condemned the entire package, Vasquez singled out the tip provision, saying tipped workers deserve to keep more earnings. He subsequently introduced H.R. 1314, known as the TIPS Act, which would abolish the $2.13 subminimum wage for tipped staff and make the tax exemption permanent beyond its 2028 expiration.
Republican spokesperson Reilly Richardson accused Vasquez of using the issue to win votes in his competitive district. Vasquez’s campaign pointed to recent jobs reports showing instability in the hospitality sector, arguing that the temporary measure is insufficient. He will face Republican veteran Greg Cunningham in the November 3 general election after winning the Democratic nomination unopposed.
Why it matters
The debate over tip-tax policy affects wages for millions of service workers and highlights broader partisan battles over tax and social-benefit legislation.
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