The post Congress’s Remittance Tax Will Increase The Cost Of Staying In Mexico appeared on BitcoinEthereumNews.com.

NEW YORK, NEW YORK – JUNE 6: An ICE agent monitors hundreds of asylum seekers being processed upon … More entering the Jacob K. Javits Federal Building on June 6, 2023 in New York City. New York City has provided sanctuary to over 46,000 asylum seekers since 2013, when the city passed a law prohibiting city agencies from cooperating with federal immigration enforcement agencies unless there is a warrant for the person’s arrest.(Photo by David Dee Delgado/Getty Images) Getty Images Crispin Agustin Mendoza is mayor of Alcozauca in Mexico. He’s also a builder of dream houses for Mexicans presently living and working in the United States, but who plan to return to Mexico. In his words to the New York Times, “I build their dream houses. That means I depend strictly on the U.S. economy.” Stop and think about that for a bit. Specifically contemplate Mendoza’s explanation of how he makes money while thinking about the proposed 3.5% tax on remittances stuffed away in the “Big, Beautiful” bill. Assuming what’s challenging, that banks and other financial institutions could become tax collectors in addition to financial intermediaries, would it be worth it? For one, a 3.5 % tax is significant. Since it is, it’s inevitable that producers rich, poor and in-between will strive to get around the tax. In other words, instead of moving their money in the safest way possible, it’s no reach to say that markets of the underground kind will form to meet the needs (and sometimes thieve from) of those for whom 3.5% is a substantial, double-tax on their earnings. And there’s more. Think again of Mayor Mendoza in Alcozauca, and what drives his business: Mexicans working in the U.S., but who aim to get back to Mexico. Think about it alongside the popular narrative about immigrants…

---

Filed under: News - @ June 12, 2025 1:22 am