Background on Claudia Sheinbaum
Claudia Sheinbaum Pardo is the current Head of Government (equivalent to Mayor) of Mexico City, serving since 2018. Previously, she was the Secretary of Environment from 2012 to 2018 under Mexico City Mayor Marcelo Ebrard. Sheinbaum, a member of the National Regeneration Movement (MORENA) party, holds a Ph.D. in Physics and Mathematics from the National Autonomous University of Mexico (UNAM).
The Republican Proposal to Tax Remittances
In the United States, a proposal is being debated in the House of Representatives to impose a 5% tax on remittances sent by immigrants to their families in their countries of origin. This proposal, introduced by the Republican Party as part of a tax reform package, has drawn criticism from Mexican officials.
Claudia Sheinbaum’s Response
During her regular “Mañanera del Pueblo” (People’s Morning) press conference on Thursday, Sheinbaum described the Republican proposal as “unacceptable.”
Mexico’s Head of Government, Claudia Sheinbaum, calls the Republican proposal to tax remittances “unacceptable.” She argues it’s both unconstitutional and would result in double taxation, as Mexicans living in the U.S. already pay taxes.
— El Economista #Mexico #USPolitics #Remittances
Sheinbaum emphasized that Mexico is the second-largest recipient of remittances from the U.S., where approximately 40 million people of Mexican origin reside. India is the top recipient, but the proposed tax would also affect many Latin American countries.
“We are in contact with the representation of those countries in the U.S. to present this as an unacceptable measure to congressmen,” Sheinbaum stated.
Impact on Remittances
This proposal has gained traction in the U.S. House of Representatives and is part of a broader tax reform package by the Republican Party. If passed, it would impose a 5% tax on remittances sent by migrants.
Florida is also considering a similar measure, which, if enacted, would make it the second U.S. state to tax migrant remittances after Oklahoma, which has been charging 1% on every $500 sent as remittances since 2009.
Remittance Trends
In the first four months of 2025, Mexicans residing in the U.S. sent $14.269 billion to their families in Mexico through remittances, marking a 1.3% increase compared to the same period in the previous year.
Key Questions and Answers
- What are remittances? Remittances refer to the funds transferred by migrants to their families and friends in their countries of origin.
- Why is the Republican proposal controversial? Critics, including Claudia Sheinbaum, argue that the proposal is unconstitutional and would result in double taxation since immigrants already pay taxes in the U.S.
- Which countries are affected by this proposal? The proposed tax would impact not only Mexico but also other Latin American countries heavily reliant on remittances from the U.S.
- What is the current status of remittances in Mexico? In the first four months of 2025, remittances to Mexico increased by 1.3% compared to the same period in the previous year.
