GOP lawmakers are pushing to increase the tax on money migrants dramatically send back to their home countries after Mexico’s president openly threatened to mobilize against the measure.
The GOP’s response to foreign interference demonstrates American resolve to protect economic sovereignty while addressing the financial drain caused by unchecked immigration.
The Senate is considering the One Big Beautiful Bill Act, which initially proposed a 3.5% tax on remittances – money that noncitizens working in America send back to their countries of origin.
Now, several Republican lawmakers are calling for this tax to be increased to 15% after Mexican President Claudia Sheinbaum made threatening remarks against the policy.
Senator Eric Schmitt (R-MO) is leading the charge to quadruple the tax rate, stating:
“The House’s Big Beautiful Bill addressed the urgent need for a remittance tax. But we can go further. I’m introducing legislation to quadruple the proposed remittance tax — from 3.5% to 15%.”
The remittance tax is a critical component of President Trump’s legislative agenda, which aims to address illegal immigration and ensure foreigners working in the United States contribute to the economy rather than siphon billions abroad.
The Joint Committee on Taxation estimates that the original 3.5% tax would generate approximately $26 billion over the next decade, which could be used for border security or infrastructure improvements.
Moreover, Mexico receives the second-largest amount of remittances globally, with billions of dollars flowing across the border annually.
This massive outflow of capital represents money earned in America that benefits foreign economies instead of being reinvested domestically.
“If necessary, we’ll mobilize. We don’t want taxes on remittances from our fellow countrymen. From the US to Mexico,” threatened Sheinbaum in a speech that has prompted swift backlash from American lawmakers.
Representative Chip Roy (R-TX) responded to the Mexican president’s threats by tweeting, “This is a New reason to amend the Senate bill to tax remittances at a lot higher rate…”
This demonstrates Republican resolve not to be intimidated by foreign leaders attempting to influence American domestic policy.
The remittance tax would only apply to non-U.S. citizens, exempting American citizens who send money abroad.
At the same time, this targeted approach ensures that the tax falls primarily on those who have come to the United States to work while maintaining their primary allegiance to their home countries.
Critics of the tax claim it would harm developing economies that rely heavily on these fund transfers.
Economic expert Jesus Alejandro Cervantes Gonzalez stated that remittances account for “20% of GDP in Guatemala, 27% in Nicaragua, 26% in Honduras, 24% in El Salvador, 20% in Haiti, and 19% in Jamaica.”
However, proponents argue that the point is that American economic policy should prioritize American interests first.
The billions flowing out of the economy represent lost domestic growth and investment opportunities.
They also create perverse incentives for more illegal immigration as foreign nationals view the United States primarily as a source of income for their home countries rather than a nation whose laws deserve respect.
The bill has already passed the Republican-controlled House and is making its way through the Senate.
If passed, it would represent a significant step toward implementing President Trump’s America First economic policies while also deterring illegal immigration by reducing one of its primary financial incentives.
