Tax Remittances
Immigrants to the United States send a lot of money back to their home countries.
These funds are known as remittances.
Countries like Mexico rely heavily on money earned in the United States and sent back home.
Remittances make up almost 4% of Mexico’s GDP.
That’s why, when the US House passed the One Big Beautiful Bill Act, Mexican leaders freaked out.
The One Big Beautiful Bill Act would levy a 3.5% tax on all remittances leaving our country.
After the bill passed the House, the Mexican President-Elect threatened to mobilize protests in the United States.
Mexico’s president-elect just said: “If necessary, we’ll mobilize. We don’t want taxes on remittances from our fellow countrymen. From the U.S. to Mexico.”
— Arne aus den Ruthen (@arnemx) June 8, 2025
A head of state openly calling for protests in the U.S. This is unprecedented. pic.twitter.com/JqFETt5NKr
That’s when Conservative Champion Eric Schmitt stepped up.
He introduced legislation to quadruple the proposal and tax remittances at 15%.
The House’s Big Beautiful Bill addressed the urgent need for a remittance tax. But we can go further.
— Eric Schmitt (@Eric_Schmitt) June 9, 2025
I'm introducing legislation to quadruple the proposed remittance tax — from 3.5% to 15%.
America is not the world's piggy bank. And we don't take kindly to threats.
America should not allow itself to be pushed around.
People from all over the world are incentivized to immigrate to our country illegally because we allow them to earn money and send it home for free.
That money is removed from the American economy.
It doesn’t help us.
America gets treated like the world’s piggy bank.
No more.
For decades, we've taxed our citizens to death, while letting immigrants send their money back home without any taxes at all.
— Senator Eric Schmitt (@SenEricSchmitt) June 11, 2025
That’s backwards.
A remittance tax is long overdue. pic.twitter.com/IbM0lA78OU
As the Senate considers the One Big Beautiful Bill, they should support Senator Schmitt’s legislation to hike taxes on remittances.
Andy Bakker
Executive Director
Liberty Alliance