Mexico Condemns U.S. Proposal to Tax Immigrant Remittances

Mexican President Claudia Sheinbaum on Thursday blasted a provision in a sweeping U.S. tax bill that would impose a 5 percent levy on money transfers sent abroad by non-citizens—including millions of Mexican immigrants—calling the measure “unacceptable” and potentially unconstitutional, as per Al Jazeera.

“It amounts to double taxation, since Mexicans living in the United States already pay taxes there,” Sheinbaum said during her daily press conference. She vowed to rally other migrant-sending countries in opposition: “This will not just affect Mexico; it will affect many nations across Latin America and beyond.”

The proposal, championed by President Donald Trump and advancing in the Republican-controlled House of Representatives, targets remittances sent by visa holders, permanent residents, and undocumented immigrants—nearly 40 million people. U.S. citizens would be exempt. Funds collected by money-transfer companies would be forwarded to the U.S. Treasury.

Supporters argue the tax would deter undocumented immigration by making it costlier to send earnings home.

“If it’s much more difficult to do, it becomes less appealing to come here,” said Mark Krikorian, executive director of the Center for Immigration Studies, an organization that advocates reduced immigration.

Mexico received more than $68 billion in remittances last year, second only to India, according to World Bank data. The inflows represent roughly 4 percent of Mexico’s gross domestic product and are a lifeline for millions of households.

Critics warn that taxing remittances could destabilize already-impoverished regions, worsening the very migration pressures the bill aims to curb.

“It taxes those who have the least,” Sheinbaum said. “They should levy taxes on those at the top, not those at the bottom.”

Even if the remittance provision is stripped from the legislation, the Trump administration has signaled it may pursue the idea through executive action. In an April 25 post on Truth Social, Trump listed “shutting down remittances sent by illegal aliens” as a forthcoming policy priority.