Mexican Legislators to Travel to Washington to Stand Against Taxes On Migrant Remittances

A group of Mexican legislators from across the aisle will travel to Washington to oppose a proposed 5% tax on remittances sent by non-U.S. citizens, a measure currently under debate in the U.S. Congress.

The delegation aims to make the case that the initiative violates a 1994 U.S.-Mexico tax treaty prohibiting double taxation and would negatively affect millions of migrant families and economies in both countries, local news site Acento explained.

Senator Alejandro Murat, head of Mexico's Senate Foreign Relations Committee, confirmed that the multi-party delegation will travel to Washington on Tuesday. The measure was temporarily halted after failing a vote in the U.S. House Budget Committee—with 21 votes against and 16 in favor, including five Republican votes— but later passed on Sunday night, sending the bill to the floor.

The Mexican delegation, comprised of members from all major political parties, aims to persuade U.S. legislators that the tax is unjust and violates a bilateral treaty prohibiting double taxation. Legislators also argue that the policy would not only breach international agreements but also incentivize informal or unauthorized money transfers, ultimately harming both economies.

Remittances are a vital income stream for Mexico, totaling over $65 billion in 2024—roughly 3.5% of the country's GDP. In some southern states like Chiapas and Guerrero, they account for up to 15.9% and 13.8% of local GDP, respectively.

President Claudia Sheinbaum also weighed in on the issue last week during a press conference, calling the measure "discriminatory". She stressed that Mexican migrants, regardless of immigration status, contribute to the U.S. economy and already pay income taxes. Edgar Amador, Mexico's Finance Minister, echoed this, saying the tax would amount to "double taxation."

The House bill is part of former President Donald Trump's broader fiscal package and targets remittances sent by non-citizens, including green card holders and visa holders—potentially affecting over 40 million people.