PULSE POINTS:
❓What Happened: GOP lawmakers are advocating for a significant increase in a proposed tax on remittances sent by immigrants in the U.S. to their home countries, following critical remarks by Mexico’s president.
👥 Who’s Involved: Senator Eric Schmitt (R-MO), Reps. Chip Roy (R-TX) and Marjorie Taylor Greene (R-GA); Mexican President Claudia Sheinbaum.
📍 Where & When: U.S. Senate, ongoing deliberations on the “One Big Beautiful Bill.” Sheinbaum’s remarks surfaced in a viral clip over the weekend.
💬 Key Quote: “The House’s Big Beautiful Bill addressed the urgent need for a remittance tax. But we can go further. I’m introducing legislation to quadruple the proposed remittance tax—from 3.5 percent to 15 percent,” said Sen. Eric Schmitt.
⚠️ Impact: The proposed tax could generate $26 billion over a decade, affecting remittance flows to Mexico, which received $64.7 billion in 2024.
IN FULL:
Republican lawmakers are pushing to dramatically increase a proposed tax on remittances sent by migrants in the U.S. to their home countries, following remarks by Mexican President Claudia Sheinbaum opposing the measure. The proposal, part of President Donald J. Trump’s “One Big Beautiful Bill,” currently under consideration in the U.S. Senate, initially called for a 3.5 percent tax on remittances from noncitizens. The newest proposal would see remittances taxed at 15 percent.
Sheinbaum’s criticism of the tax, captured in a viral video over the weekend, saw her declare, “If necessary, we’ll mobilize. We don’t want taxes on remittances from our fellow countrymen. From the U.S. to Mexico.” While her use of the term “mobilize” remains unclear, it has prompted a strong reaction from U.S. lawmakers.
Sen. Eric Schmitt (R-MO) announced plans to introduce legislation to increase the tax rate to 15 percent, citing Sheinbaum’s comments as a catalyst. “The House’s Big Beautiful Bill addressed the urgent need for a remittance tax. But we can go further. I’m introducing legislation to quadruple the proposed remittance tax—from 3.5 percent to 15 percent,” Schmitt stated on X (formerly Twitter). He added, “America is not the world’s piggy bank. And we don’t take kindly to threats.”
The tax is projected to generate approximately $26 billion over the next ten years, according to the Joint Committee on Taxation. Remittances, a key revenue source for many developing nations, are particularly significant for Mexico, which received $64.7 billion in such transfers in 2024, making it the second-largest recipient globally, behind India.
Rep. Chip Roy (R-TX) also supported raising the tax, responding to Sheinbaum’s comments by writing, “New reason to amend the Senate bill to tax remittances at a lot higher rate…” Rep. Marjorie Taylor Greene (R-GA) echoed the sentiment, saying, “Raise the remittances!!”
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