Trump’s proposed 5% tax on remittances was lowered to just 3.5% by the Senate, Sheinbaum said

Mexican President Claudia Sheinbaum said that the U.S. lowered its proposed tax on remittances from 5% to 3.5%, but that officials will continue working to lower it further.

During her daily press conference on Thursday, Sheinbaum welcomed a move by U.S. lawmakers to reduce the proposed tax rate to 3.5%, but said she would keep pushing for its full elimination. She argued that the tax would harm not just Mexico, but many countries in the region and beyond.

The tax is a total disgrace. It mostly will hurt poor poeple / lower income earners in the U.S. who are trying to help even poorer members of their families overseas. This tax will be paid on top of the income and social security taxes that have already been paid on the amounts being remitted.

Mexican President Welcomes Tax Cut On Remittances For Migrants, Vows to Keep Fighting

In 2024, Mexico received a record $64.7 billion in remittances, accounting for nearly 4% of its gross domestic product, according to the country’s central bank

https://www.latintimes.com/mexican-president-welcomes-tax-cut-remittances-migrants-vows-keep-fighting-583665