Pushing to increase taxes on money sent out of America by illegal aliens, Republican lawmakers are standing strong against foreign interference by proposing a 15% remittance tax.
After Mexican President Claudia Sheinbaum threatened to “mobilize” against the proposed 3.5% remittance tax, GOP leaders are now calling for an even higher 15% rate.
This shows they will not back down to foreign pressure regarding U.S. policy decisions.
The remittance tax is a key component of President Trump’s legislative agenda, included in the comprehensive One Big Beautiful Bill Act currently moving through Congress.
The measure would impose a tax on money transfers sent by illegal aliens living in the United States to their home countries, with U.S. citizens explicitly exempted from the tax.
Senator Eric Schmitt (R-MO) heads the charge to strengthen the proposal, announcing plans to quadruple the tax rate.
“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%,” Schmitt said.
The push for a higher tax rate comes after President Sheinbaum publicly threatened to mobilize against the proposal.
“If necessary, we’ll mobilize. We don’t want taxes on remittances from our fellow countrymen. From the US to Mexico,” Sheinbaum declared, directly interfering in U.S. domestic policy decisions.
Furthermore, Congresswoman Chip Roy (R-TX) quickly responded to the Mexican president’s threats, tweeting that her comments provided a “New reason to amend the Senate bill to tax remittances at a lot higher rate…”
“Remittances are the fruit of the efforts of those who, through their honest work, strengthen not only the Mexican economy but also the United States’, which is why we consider this measure to be arbitrary and unjust,” Sheinbaum claimed.
The Joint Committee on Taxation estimates the currently proposed tax could generate over $1 billion in revenue by 2026, rising to $3 billion by 2034.
With the higher rate being proposed, this figure could increase substantially to approximately $26 billion over the next decade, money that could fund border security and offset costs associated with illegal immigration.
Mexico stands to lose significantly from this proposal as the second-largest recipient of remittances globally.
In 2024 alone, remittances from the U.S. to Latin America and the Caribbean reached $160.9 billion, with Mexico receiving the most.
Yet, supporters of the tax point out that illegal aliens are already benefiting tremendously from American opportunity while often sending significant portions of their earnings outside the U.S. economy.
The Center for Latin American Monetary Studies found that Mexican migrant workers send 16.7% of their income as remittances, with over 80% remaining in the U.S. economy.
Florida Governor Ron DeSantis has taken the concept even further, considering a requirement for identity verification for money transfers to prevent illegal aliens from sending remittances altogether.
The proposed tax has already passed the Republican-controlled House and is moving to the Senate for a vote.
This would set up a showdown between American sovereignty and foreign interests that want to continue the free flow of billions of dollars out of the economy without contributing to the national infrastructure or security needs.
As the bill advances through Congress, the American people are watching closely to see which lawmakers will stand firm for American interests in the face of foreign pressure.
