Mexico’s president calls on Mexicans living in US to denounce proposed tax on remittances

MEXICO CITY

Mexican President Claudia Sheinbaum called on Mexican Americans and undocumented Mexicans living in the US to push back on the proposed levy on remittances put forward by the Republican Congress.

"We do not agree with this tax, which, it should be noted, has been proposed by the Republican congress members. So far, they are the ones who have brought it up. We disagree for two reasons: first, it is discriminatory, and second, it violates a treaty between Mexico and the United States," Sheinbaum said.

On May 14, Republican representatives put forward a bill that would tax the funds wired by immigrants living in the US back home. The initiative, which is sponsored by President Donald Trump, follows the massive crackdown on irregular immigration promised by the Republican leader and is expected to impact over 40 million working people in the US.

For Mexico, which represents the largest demographic of undocumented immigrants living in the US, the proposed bill is a direct threat to the millions of families who depend on the US dollar-backed support they send over day-to-day.

For Mexico, remittances represent 4% of its Gross Domestic Product (GDP). However, for its poverty-stricken and marginalized states such as Chiapas and Guerrero, these money transfers amount to 15% and 13% of its local GDP, respectively.

Since news broke out, President Sheinbaum has denounced the intended bill, upbraiding the Republicans for falling into discriminatory practices since US nationals are exempted from the tax.

During Friday’s morning briefing, she called on Mexican Americans and undocumented Mexicans in the US to issue letters to their local congressional representatives to denounce the intended bill.

"Our fellow countrymen and women should also send letters to their congressional representatives, whether they are citizens or not, stating that this tax is discriminatory and would violate this treaty,” Sheinbaum said.

In addition, she said that next week, the Mexican Ambassador to the US will hold meetings with different Mexican American organizations to further the mobilization of Mexicans against the tax bill.

A special bipartisan Senate commission headed by the Mexican Ambassador will also meet with US Congress representatives, while Sheinbaum said she will talk with Trump.