Impact of Taxing Remittances, Numerated by the Dollar and Economic Activity in the United States

There is bad news for Puebla because the U.S. Congress approved the 3.5% tax on undocumented migrant remittances, as the state occupies the 3rd place in shipments, after Tamaulipas, Guerrero and ahead of Oaxaca and Veracruz. These 5 states top the list that will suffer the biggest economic impacts when the tax is approved, according to an analysis by BBVA Research. In 2024, Mexico received $62.5 billion in remittances.

The impact that will be felt in the flow of remittances captured in Mexico, as a result of the tax that the U.S. government would apply if approved by the Senate, will not be one by one, said Oxford Economics senior economist Joan Domene.This means that there will be no proportional reduction to the tax rate.Mexicans who send remittances take into account the total amount in pesos received by their family members in their home country, as a resu…