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-Editorial
President Claudia Sheinbaum strongly criticized a proposed 5% tax on remittances introduced by Republican lawmakers in the U.S. House of Representatives, calling the measure discriminatory and in violation of a 1994 bilateral agreement between Mexico and the United States.
During her daily morning press conference, known as La Mañanera, Sheinbaum said the proposed tax would unfairly target low-income individuals and Mexican nationals living in the United States. The tax would also contravene the Treaty to Avoid Double Taxation, signed by both countries and in force since 1994, which guarantees non-discriminatory fiscal treatment for nationals of either country.
“We disagree with this proposal. First, it is discriminatory. Second, it violates a treaty signed between Mexico and the United States,” Sheinbaum said. “What are we doing about it? First, we’ve sent letters [of concern]. Second, next week, the Mexican Ambassador to the United States will meet with various organizations of Mexican Americans to explain why this is not a good idea.”
Sheinbaum also announced that a Mexican Senate commission, comprised of representatives from all political parties, will travel to the U.S. to meet with American lawmakers and advocate against the proposed tax.
In a direct appeal to the Mexican diaspora in the U.S., she urged individuals to write to their congressional representatives, emphasizing how the tax would harm working-class families and violate international agreements.
The president noted that while the measure is not exclusive to Mexico, it would affect all remittances sent abroad, including to countries like India, which receives the highest volume globally. However, Sheinbaum stressed the disproportionate impact on Mexican migrants who regularly send money to support families back home.
“Those living in the U.S. will still send the same remittances,” she said, “but now with 5% less spending power. This is a burden on those who have the least.”
Finance Secretary Edgar Amador Zamora echoed the concerns, providing data that underscored the economic significance of remittances. In 2024, Mexico received $64.7 billion in remittances—equivalent to approximately 3.5% of national GDP—with 99.1% sent through regulated, electronic channels.
Zamora pointed out that Mexican workers in the U.S. already pay federal income taxes ranging from 10% to 37%, and imposing an additional 5% tax on remittances would effectively result in double taxation, violating Article 25 of the 1994 treaty.
“This is a legal, transparent system,” Zamora said. “To impose another tax would be not only unjust but in breach of international agreements.”