Letter from Ambassador of Mexico

May 13, 2025

The Honorable Jason Smith
Chairman
Committee on Ways and Means

The Honorable Richard Neal
Ranking Member
Committee on Ways and Means

United States House of Representatives
1139 Longworth House Office Building
Washington, DC 20515

Dear Representatives Smith and Neal:

We extend our warmest regards and respectfully refer to the bill announced on May 12, specifically
Section 112105, which contemplates the imposition of a 5% levy on remittances sent by certain
segments of the population residing in the United States.

Mexico understands the efforts of the U.S. Congress—and in particular, of your distinguished
Committee under your leadership—to advance an economic agenda that benefits American families
and workers, as well as the measures to increase fiscal revenue. It is precisely in this spirit of mutual
respect that we wish to share some considerations with you, in the hope of enriching the legislative
discussion, recognizing that revenue can be increased through means other than a tax or levy on
remittances.

First, it is essential to keep in mind that applying this tax would disproportionately affect the most
vulnerable workers, many of whom perform essential functions critical to the proper functioning of
the U.S. economy. Sectors such as agriculture depend heavily on their labor and dedication: for
instance, nearly 70% of the agricultural workforce was born outside the United States (Department
of Labor 2021).

Second, it is important to highlight the significant contribution of the Mexican population residing in
the United States to the country’s public finances. Based on estimates derived from tax payments by
immigrant households (American Immigration Council 2023) and immigrant population figures (U.S.
Census Bureau), the fiscal contribution of this group exceeded $121 billion in 2021.

Taxing remittances would amount to a form of double taxation, since migrants already pay taxes in
the country where they work. Imposing a tax on these transfers would disproportionately affect those
with the least, without accounting for their ability to pay.

Third, in 2024, Mexican migrant workers sent on average only 16.7% of their labor income as
remittances to their families (CEMLA 2025). In other words, more than 80% of the income generated
by this community remains in the U.S. economy, stimulating domestic consumption and contributing
to the prosperity of the country. Moreover, such measures tend to be regressive, as many remittances
are directed to low-income families who rely on them to meet basic needs.

Fourth, such a tax could also have significant negative side effects. As the cost of sending money
rises, many migrants might seek informal or unregulated means to do so, complicating oversight and
control of these financial flows. This would not only reduce the expected revenue but also increase
risks related to financial security, tax evasion and money laundering.

Finally, taxing remittances would also impact other sectors that use these channels, such as small

transfers for tourism, commerce or humanitarian assistance. Taken together, these measures could
produce economic effects more harmful than their fiscal benefits.

For these reasons, we respectfully share our concern regarding the potential consequences of this
provision, which would affect a population that already makes significant contributions to the public
budget, as well as their families—many of whom belong to the most disadvantaged and vulnerable
communities in Mexico.

Mexico and the United States share a deep and historic relationship. The workers referenced in this
bill migrated out of necessity and now contribute substantially to the U.S. economy. We respectfully
urge you to reconsider this section of the legislative proposal, and we remain available to continue
dialogue on the matter.

We thank you in advance for your kind attention and reiterate the assurances of our highest and most
distinguished consideration.

Sincerely,

CC: The Honorable Vern Buchanan, Member, Committee on Ways and MeansThe Honorable Adrian
Smith, Member, Committee on Ways and Means
The Honorable Mike Kelly, Member, Committee on Ways and Means
The Honorable David Schweikert, Member, Committee on Ways and Means
The Honorable Darin LaHood, Member, Committee on Ways and Means
The Honorable Jodey Arrington, Member, Committee on Ways and Means
The Honorable Ron Estes, Member, Committee on Ways and Means
The Honorable Lloyd Smucker, Member, Committee on Ways and Means
The Honorable Kevin Hern, Member, Committee on Ways and Means
The Honorable Carol Miller, Member, Committee on Ways and Means
The Honorable Greg Murphy, Member, Committee on Ways and Means
The Honorable David Kustoff, Member, Committee on Ways and Means
The Honorable Brian Fitzpatrick, Member, Committee on Ways and Means
The Honorable Greg Steube, Member, Committee on Ways and Means
The Honorable Claudia Tenney, Member, Committee on Ways and Means
The Honorable Michelle Fischbach, Member, Committee on Ways and Means
The Honorable Blake Moore, Member, Committee on Ways and Means
The Honorable Beth Van Duyne, Member, Committee on Ways and Means
The Honorable Randy Feenstra, Member, Committee on Ways and Means
The Honorable Nicole Malliotakis, Member, Committee on Ways and Means
The Honorable Mike Carey, Member, Committee on Ways and Means
The Honorable Rudy Yakym, Member, Committee on Ways and Means
The Honorable Max Miller, Member, Committee on Ways and Means
The Honorable Aaron Bean, Member, Committee on Ways and Means
The Honorable Nathaniel Moran, Member, Committee on Ways and Means
The Honorable Lloyd Doggett, Member, Committee on Ways and Means
The Honorable Mike Thompson, Member, Committee on Ways and Means
The Honorable John Larson, Member, Committee on Ways and Means
The Honorable Danny Davis, Member, Committee on Ways and Means
The Honorable Linda Sánchez, Member, Committee on Ways and Means
The Honorable Terri Sewell, Member, Committee on Ways and Means
The Honorable Suzan DelBene, Member, Committee on Ways and Means
The Honorable Judy Chu, Member, Committee on Ways and Means
The Honorable Gwen Moore, Member, Committee on Ways and Means
The Honorable Brendan Boyle, Member, Committee on Ways and Means
The Honorable Don Beyer, Member, Committee on Ways and Means
The Honorable Dwight Evans, Member, Committee on Ways and Means
The Honorable Brad Schneider, Member, Committee on Ways and Means
The Honorable Jimmy Panetta, Member, Committee on Ways and Means
The Honorable Jimmy Gomez, Member, Committee on Ways and Means
The Honorable Steven Horsford, Member, Committee on Ways and Means
The Honorable Stacey Plaskett, Member, Committee on Ways and Means
The Honorable Thomas Suozzi, Member, Committee on Ways and Means