The Mexican government has vowed to act against a proposed US tax on remittances sent by Mexican immigrants to their families in Mexico.
In a public statement, President Claudia Sheinbaum expressed the country’s strong opposition to the measure, which is part of a budget package being pushed by the US administration. The plan would impose a 3.5% tax on remittances, sparking widespread criticism from both sides of the border.
Sheinbaum emphasized that Mexico will not stand idly by in the face of this proposal, warning that her government could “mobilize” against it if necessary. This statement was made during an event in Villa Hidalgo, San Luis Potosí, where she reiterated Mexico’s stance on the issue.
The Mexican leader argued that it is unfair to tax remittances sent by immigrants who have already paid their taxes in the US. “Our brothers and sisters there work hard and pay their taxes,” Sheinbaum said. “It’s not right that they should also be taxed on the money they send to their families.”
As the proposal gains momentum in the US Congress, Mexico is urging lawmakers to reconsider the measure. The Mexican Senate has already voiced its opposition, warning that a tax on remittances would harm both nations’ economies and encourage migrants to seek irregular means of sending money home.
Experts agree that a tax on remittances could have far-reaching consequences for both countries. Manuel Orozco, director of the Center for Migration and Economic Stabilization, told CNN that such a measure would likely discourage migration and reduce the amount of money sent back to Mexico by immigrants.
Remittances are a vital source of income in Mexico, with the country receiving over $14 billion from this source in the first quarter of 2023. The Mexican government is keenly aware of the importance of these funds and is determined to protect them against any potential threats.
As the debate continues both sides of the border, it remains to be seen whether the US Congress will ultimately pass a tax on remittances. However, one thing is clear: Mexico will not go quietly into the night if this proposal becomes law.
Source: CNN Español
