Taxing remittances?
Posted By: DVC, 5/19/2025 1:42:50 PM
We've posted about remittances to Mexico in the past. It's a big number and the top source of cash for Mexico after oil and tourism revenues. It's US$ 63 billion, a lot of money, to say the least. It's also a lot of money leaving the U.S., specially from towns and communities that could use the funds to support local services. [snip] Remittances, one of Mexico’s main sources of foreign currency, are now in the crosshairs of U.S. tax policy. A U.S. House of Representatives committee on Wednesday approved a proposal to impose a 5% tax on remittances.
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Taxing remittances?
13 replies
We've posted about remittances to Mexico in the past. It's a big number and the top source of cash for Mexico after oil and tourism revenues. It's US$ 63 billion, a lot of money, to say the least. It's also a lot of money leaving the U.S., specially from towns and communities that could use the funds to support local services.
[snip]
Remittances, one of Mexico’s main sources of foreign currency, are now in the crosshairs of U.S. tax policy. A U.S. House of Representatives committee on Wednesday approved a proposal to impose a 5% tax on remittances.
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Comments:
5% tax is ridiculously low. I suggest 35% tax as a start, increasing to 50% over 5 years.