FROM THE OUTSIDE | Migrants and taxes

“I rise to oppose the Trump administration’s double taxation on remittances — part of a broader war on working-class immigrants that punishes those who contribute the most to this country’s economy.”

Those were the words of Jesús “Chuy” García, a Democratic Representative from a Chicago district and one of the most outspoken Latino lawmakers in the U.S. Congress, during the debate over the budget bill passed last Thursday by the House of Representatives. The bill includes a 3.5 percent tax on money transfers from the United States.

García wasn’t alone. Several Hispanic lawmakers spoke out against a budget law widely criticized for favoring the wealthiest Americans over the middle and lower classes.

The legislation, approved by a narrow 215 to 214 vote, largely centers on extending Trump’s 2017 tax cuts—worth $3.8 trillion—which disproportionately benefit the rich and large corporations.

According to the nonpartisan Congressional Budget Office, Americans in the bottom 10 percent of the income scale would lose money under the measure. In comparison, the top 5 percent would receive tax cuts totaling $117.2 billion — over 20 percent of the total tax reductions in the bill.

Most forecasts, except those put forward by Trump and his allies, suggest the legislation will have a negative overall impact, particularly on the most vulnerable groups.

In contrast, the American Immigration Council reports that immigrants collectively paid over $500 billion in taxes in 2019. In 2023, households led by undocumented immigrants — representing 4.9 percent of the U.S. workforce — spent $89.8 billion in taxes, including $33.9 billion in state and local taxes and $55.8 billion in federal taxes.

According to various sources, Mexican remittances in the U.S. reached $68 billion last year.

The Mexican government might say it fared well, especially compared to previous Trump-era proposals that aimed to impose remittance taxes of up to 35 percent — or even ban money transfers altogether.

García emphasized that “when immigrants send money to their families, they’re not just helping their loved ones — they’re keeping entire communities afloat in countries like Mexico, Nigeria, and the Philippines.”

“By cutting off that vital support to families abroad, this tax increases poverty, sparks instability, and pushes more people to migrate out of desperation.”

For now — pending legislative maneuvering and any changes in the coming days — that’s the current outlook.