Background on the Issue
Mexico is a significant recipient of remittances, primarily from migrants residing in the United States. In 2024 alone, Mexico received $64,745 million in remittances, marking a 2.3% increase from the previous year.
Mexican Government’s Stance
The Mexican government, led by President Claudia Sheinbaum, has rejected the proposed tax on remittances. The Senado’s communiqué described the initiative as “arbitrary and unjust.”
Morena’s Response
Adán Augusto López, the leader of Morena’s bloc in the Senate, called for a diverse group of senators to address the US Congress. He plans to present a technical and political document outlining their position.
“Imposing such a tax would be tributary injustice,” López explained, stating that migrants already pay taxes for their work in the US. Taxing remittances would constitute “double taxation.”
Impact on Mexican Families
Reginaldo Sandoval, a representative from the Labor Party, emphasized the potential impact on Mexican families that rely on remittances.
Key States Dependent on Remittances
The impoverished southern states of Chiapas and Guerrero heavily depend on migrant remittances, according to a BBVA analysis. In Chiapas, remittances account for 15.9% of the state’s GDP, while in Guerrero they represent 13.8%.
Key Questions and Answers
- What is the proposed tax on remittances? The US Congress is currently discussing a potential tax on remittances sent by migrants from the United States to their home countries, including Mexico.
- Why are Mexican lawmakers traveling to the US? The Morena party’s leader, Adán Augusto López, has organized a delegation of senators to present their opposition to this proposed tax to the US Congress.
- How would this tax affect Mexican families? The proposed tax on remittances could negatively impact Mexican families that rely on these funds, as highlighted by Reginaldo Sandoval from the Labor Party.
- Which Mexican states are most reliant on remittances? Chiapas and Guerrero, two impoverished southern states in Mexico, are heavily dependent on migrant remittances. In Chiapas, remittances account for 15.9% of the state’s GDP, and in Guerrero, they represent 13.8%.
