Republican Senator Eric Schmitt raised his proposal to tax remittances sent by migrants from the United States after Gerardo Fernández Noroña, president of the Mexican Senate, mocked his idea.
“The president of the Mexican Senate is very upset about my proposal to triple the tax on remittances. At a press conference yesterday, he mocked my idea. Guess what? The remittance tax just increased by 5 percent,” he posted on X.
The legislator published his message on X one day after the Senate president criticized the proposal to raise the tax on sending money abroad to 15 percent.
The House of Representatives has currently approved a 3.5 percent tax on remittances, but the United States Senate is now debating the tax bill.
“There’s the issue of the remittance tax, which a US senator has already said they’re going to impose 15 percent on. You’re looking and you’re not seeing, Senator, I don’t know what it’s called,” said Gerardo Fernández Noroña.
Eric Schmitt, a senator from the state of Missouri, announced on June 8 that “they could go further” with the remittance tax.
“I will send a proposal to quadruple the remittance tax, from 3.5 percent to 15 percent. The United States is not the world’s piggy bank. And we don’t take threats in a friendly manner,” he posted on X.
Noroña responds to Eric Schmitt
Following this statement, Fernández Noroña responded to the US politician through his X account.
The Morena legislator stated: “So Senator Eric Schmitt
is celebrating the imposition of an injustice, which isn’t even his idea.”
“He (Schmitt) proposed increasing it to 15 percent, and his absurd initiative was not considered. The decision to impose a five percent tax on remittances can and should be litigated.”
The situation is extremely tense, not of one’s own making: Noroña
Fernández Noroña stated that “the situation is extremely tense, not of one’s own making.”
“It was inaccurate information—that the Senate had returned remittances to 5%, and then there’s a huge campaign holding me responsible for that because of a criticism I made of Senator Smith, who presented a bill to raise it to 15%.
“It’s false that it’s gone back to 5%. If they did that, they’re still in the internal legislative process. Representatives would have to return to the Assembly, and they wouldn’t be able to keep the timeline as they wanted to pass that resolution and the entire package they presented,” he stated.
He pointed out that there’s a group “on the right” “that’s already calling for my removal. It’s been a campaign for two months, ongoing, ongoing, ongoing, but since March, every day with a constant, ongoing hammering, distorting things like what happens with other fellow actors in the movement.”
And he added: “Only in my case, since I’m very active (…)”
Later, he commented that “the truth is that the situation is extremely tense, not caused by anyone. The current United States government, since its presidential campaign (Donald) Trump, said it was going to do what it’s doing.”
He recalled that many people voted for Trump, despite what he said he would do to migrants.
“It was thought it wouldn’t happen, and the only thing we’re asking for is respect for their human rights, because we are clear that the internal regulations of the United States are decided by the United States government and the United States people, the United States institution, the United States Congress, and we have no interference in that regard.” “It has been insisted that remittances are unfair, that they constitute double taxation, because that is the case. There is an agreement that prohibits double taxation and the payment of taxes on these remittances, and so yet another campaign is being waged against me on the issue,” he emphasized.
What is the impact of the remittance tax on Mexico?
The 3.5 percent tax on remittances being promoted by US President Donald Trump threatens to cut billions of dollars from economies like Mexico, which received nearly $65 billion in these remittances in 2024.
The United States is currently debating the implementation of a 3.5 percent tax on remittances sent from its territory. The measure would directly impact countries in Latin America and the Caribbean, where these remittances constitute a key source of national and family income.
This tax would affect remittances sent by people who are not US citizens or nationals, including permanent residents and work visa holders. US citizens would be exempt, provided they use qualified remittance transfer providers and verify their status.
The tax would take effect on January 1, 2026, if approved by the Senate and signed into law by the president. It is estimated that it could generate revenue of approximately $22 billion between 2026 and 2034.
Mexico, the main recipient in the region, accumulated $64.745 billion in remittances in 2024, equivalent to 3.4 percent of the Gross Domestic Product (GDP).
According to official data, in the states of Chiapas, Guerrero, Zacatecas, and Michoacán, these transfers account for up to 20 percent of household income. In the first four months of 2025, the country registered a 2.5 percent drop in remittance income, reaching $19.015 billion. In April alone, the decline was 12.1 percent.
Source: milenio
