US EditionRemittance Tax Plan Poses Threat to US Allies in Central America
- A Republican bill introduced to the U.S. House would impose a 5% tax on remittances sent by noncitizens and foreign nationals, targeting payments largely to Central America.
- The proposal follows earlier efforts, including similar bills during Trump's term, and faces criticism for potentially double taxing migrant workers who already pay U.S. Income taxes.
- Remittances form a critical part of economies in countries like El Salvador, Guatemala, and Honduras, with inflows exceeding $38 billion in the Philippines alone and supporting many poor families.
- Experts warn the tax could reduce remittance volumes by about 10%, increase reliance on cryptocurrency or informal channels, and risk currency depreciations and economic disruption in recipient nations.
- Opponents, including Mexican officials and digital payment groups, argue the tax harms vulnerable populations and could undermine vital financial connections between U.S. Migrants and their families abroad.
22 Articles
22 Articles
President Claudia Sheinbaum said her government will continue to “try to convince U.S. congressmen” that “it’s not a good thing” the 5 percent tax on remittances, because it affects not only Mexico, but also the United States. On Sunday, members of the Republican Party in the US Lower House Budget Committee revived President Donald Trump’s fiscal plan and spending, which includes a new 5 percent tax on remittances. The president, at the morning …
House Republicans’ proposed tax on remittances spooks financial sector
The ScoopFinancial institutions are looking to stir up resistance to a Republican proposal to tax cash that migrants send to family members in their home countries ahead of a House vote expected this week.The provision’s inclusion in the GOP’s massive tax and spending bill caught many in the sector off-guard. Text of the bill released last week would require banks, credit unions and other companies that process so-called remittances to collect i…
The bill called “Big and Beautiful Bill,” promoted by Republicans in the U.S. House of Representatives, raises a 5% tax on all remittances sent by migrants from that country.
Members of migrant organizations yesterday protested in front of the U.S. embassy, against the proposal to impose a 5 percent tax on remittances. Although the bill stopped in committees of the House of Representatives, “we want it to be repealed definitively” and that politicians in that country do not use this issue for electoral purposes.
Applying an additional 5% to sending money abroad would violate an agreement between the United States and Mexico signed in 1994
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