Mexico’s president says she will reimburse Mexican immigrants in the United States for a proposed tax on the money they send back to Mexico.
Senate Republicans have reduced the proposed tax on the money immigrants send to family and friends in their countries of origin in the latest version of the GOP’s domestic policy megabill.
The tax on remittances — or the money immigrants send back to their countries of origin — would only apply to money paid in cash and was reduced from 3.5% to 1%. Mexican President Claudia Sheinbaum said Monday that, if the measure passes, her government would pay back Mexican immigrants in the U.S. who have to pay that tax.
“This is an achievement for our countrymen and women,” Sheinbaum said.
The original remittance tax in the House version of the Republican megabill was 5% for non-citizen immigrants.
The most recent Senate version of the bill would tax cash remittances from all immigrants — including U.S. citizens — at 1%. It leaves out remittances paid electronically, like through bank accounts or credit cards. Immigrants often send remittances through international money transfer services like Western Union or MoneyGram.
Mexico receives more than $55 billion in remittances each year, economists say.
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