Republican Rep. Says His New Tax Bill On Immigrants Will Help Pay for The Border Wall
The Trump Administration, along with many Republican legislators, are still looking for “creative” ways to get funding for the border wall. Even though it appears President Donald Trump has sort of forgotten about it — at least according to his budget outline — there’s still a couple of go-getters who think they have the solution to bring in the big bucks for the big wall.
Remember when Ted Cruz said that El Chapo and the drug cartel in Mexico should cover the bill? Yeah, that was hilarious.
Now, Mike Rogers, a Republican congressman from Alabama, is proposing a bill that would enforce a remittance tax and use those funds towards building the border wall. So, basically, money being sent to other countries via wire transfers from the United States would have an additional tax. Guess who sends the most money from the United States to other countries: LATINOS.
The bill is called “The Border Wall Funding Act of 2017” and it was presented by Rogers on March 30. According to NPR, the bill calls for a “2 percent tax on all person-to-person wire transfers to Mexico, the rest of Latin America and the Caribbean.”
Mexico gets the biggest chunk of change from United States citizens, documented and otherwise. The World Bank reports that the remittance flows in 2015 for Mexico was $28.5 billion.
The World Bank has stated that remittance tax is not good for a variety of reasons. One of them is that it affects the poorest communities.
“Since the income of migrants has, in principle, already been taxed in the host country, taxing remittances amounts to double taxation for tax-paying migrants,” Dilip Ratha, lead economist at the World Bank, writes. “Since remittances are usually sent to poor families of migrants, the tax would be born ultimately by them and therefore it is likely to be highly regressive.”
Ratha also states that even if this bill is approved, migrants will find other creative ways to get money back to their people in Mexico.
Do you think people should be taxed for sending money out of the U.S.? Let us know by sharing this story and commenting below!
Notice any needed corrections? Please email us at firstname.lastname@example.org