The Mexican government rejects the transfer of transfer in the Trump tax bill

The Republican bill from the house In order to meet President Trump's domestic policy agenda, a provision contains the Mexican government to opposition-a tax on cash payments that were sent by non-US citizens to family members in their home countries.

The payments referred to as transfers would be subject to a consumption tax of 5% Visa ownerLike people on H-1b, H-2A and H-2B visa. US citizens would be liberated.

In a letter from May 13 to the leaders of the House Ways and Means Committee, Esteban Moctezuma Barragán, Mexican ambassador to the USA, the chairman Jason Smith and the ranking member Richard Neal asked to rethink the suggestion.

“We respectfully ask you to rethink this section of the legislative proposal, and we will remain available to continue dialogue about the matter,” wrote Barragán and Robert Velasco Alvarez, Mexican Chief Officer for North America.

The spokesman for Smith and Neal did not respond to a request for comments.

In April, President Trump pointed out a procedure against the transfers and announced in a social post of truth that the administration had “completed a presidential memorandum to close transfers from illegal foreigners outside the United States”. However, details on the President's proposal were unclear.

The transfer tax regulations in the legislation have become an international flash point. The Mexican President Claudia Sheinbaum also criticized the plan and asked the Republican legislators to rethink it.

At a press conference this week, Sheinbaum warned that the proposal “would damage the economy of both nations and also contradict the spirit of economic freedom that the US government claims to defend itself”.

“Transfers are the fruit of the efforts of those who, through their honest work, strengthen not only the Mexican economy, but also the United States, which is why we consider this measure to be arbitrary and unfair,” she said.

An estimate by the Center for Latin American currency studies cited in the letter showed that Mexican migrant employees sent 16.7% of their work income as transfers.

“In other words, more than 80% of the income generated by this community remain in the US economy,” says the letter.

However, the joint committee for taxes estimates that the proposal in the 2026 financial year would generate a little more than 1 billion US dollars in tax revenue and would increase to around 3 billion US dollars by 2034.

In the letter to the legislator Barragán The proposal would be double taxation, “since migrants already pay taxes in the country in which they are working.”

“The taxes on these transfers would influence those with the slightest disproportionately without making their solvency,” he added, and also warned of other unintentional consequences.

“Many Migrant Can search for informal or unregulated means to do this, to make it difficult to supervise and control these financial currents. This would not only reduce the expected income, but also increase the risk in connection with financial security, tax evasion and money laundering, ”he wrote.

Barragán has met with the legislators in the past few days and discussed the matter with them. On Tuesday, he organized a dinner for members of the congress, including Texan MP Tony Gonzalez, whose district extends the length of the state of the state of Mexico and houses many migrant workers. Brian Mast, Chairman of the Committee of the House from the Foreign Affairs, and the representative of Florida, Maria Elvira Salazar, took part in the dinner.

Salazar said that when she was asked about the proposal, she still rated legislation and who influenced it and found that banks already raise fees for such transactions.

“I just want what is fair, what is currently and what is Christian,” she said.

Regardless of this, Barragan met with Pennsylvania Dave McCormick's senator and also discussed the transfer measure.

Representatives of the electronic payment transmission industry also made a concern that this proposal would harm communities in need of protection.

“Such a measure would damage the strongest endangered consumers, undermine small companies, disrupt critical financial regulations and to combat the ability of law enforcement to combat illegal activities,” wrote the Electronic Transactions Association to Smith and Neal.

The group also added, “Taxed transfers will distort the behavior and lead consumers to unregulated, underground channels to avoid the additional costs.”

Pete Villasmil contributed to this report.