LXVI Senate
From the Senate of the Republic, making use of the foreign policy powers conferred by Article 76 of the Constitution, we hereby express our disagreement with the initiative promoted by Republican Congressman Jason Smith in the U.S. House of Representatives, within the framework of the so-called The One, Big, Beautiful Bill, which, among other measures, seeks to impose a 5% tax on remittances sent home by immigrants.
It is important to note that, in the United States, all workers, regardless of their immigration status, pay their taxes on a daily basis. Therefore, this measure would mean an unfair double taxation on that 20% of the labor income of immigrant workers, that, already taxed, leaves the country. These taxes, moreover, do not translate into social spending for the population group that generates them, who are, in many cases, unable to access social programs. The remaining 80%, that is, most of their income, remains in the U.S. economy, improving the wellbeing of those who live there.
We call for moderation in response to this proposal, since technical projections show that the imposition of a tax or tariff on remittances would only discourage the use of regular and formal channels, forcing many immigrants to seek alternatives outside the financial system to send money to their families.
POLITICAL COORDINATION BOARD
From the Senate, we maintain that remittances are the result of the efforts of those who, through their honest work, strengthen not only the Mexican economy, but also that of the United States. This is why we consider this measure to be arbitrary and unfair, and we call on the U.S. legislature to reconsider this proposal, which would damage the economy of both nations. It is also contrary to the spirit of economic freedom that the U.S. government claims to defend, and which permeates the North American free trade agreements.
From our point of view, relations between brotherly peoples are strengthened through dialogue and mutual understanding, building bridges, and not by erecting walls or economic barriers.
Related: Letter from Ambassador of Mexico
Mexican Press Agency is part of ALMA, which is dedicated to news and information about Mexico and Mexicans in the United States and is a fiscally sponsored project of Social Focus, a 501(c)(3) nonprofit organization based in Redwood City, California.
