A Proposed New Tax, Mainly On Latinos, To Pay For Trump’s Border Wall

*This happened yesterday, while the rest of us were mesmerized by the Peckinpahesque implosion of the Trump administration, congress was moving a piece of legislation that would fund the Trumpian border wall with a tax on the person-to-person wire transfers known as remittances. VL


NewsTaco MONEY WEDNESDAY

By Jason Beaubien, NPR (5 minute read) 

One of President Trump’s boldest, most ambitious proposals on the campaign trail was to build a wall along the Southern border and get Mexico to pay for it. Amid the tumult of Trump’s first few months in office, the border wall hasn’t gotten as much attention as some other things. But new legislation has been introduced in Congress to help fund it.

It’s called the Border Wall Funding Act of 2017, introduced on March 30 by Rep. Mike Rogers, R-Ala.

And it would put a 2 percent tax on all person-to-person wire transfers to Mexico, the rest of Latin America and the Caribbean.

It’s not the only bill targeting remittances. An earlier proposal in the Senate, which didn’t advance out of committee, would have placed a 7 percent “fine” on remittances unless the sender can prove he or she is in the U.S. legally.

It should be noted that these proposals would only apply to personal transfers and not to businesses moving money abroad to say, Mexico or the Cayman Islands.

Read more stories about Latino economy in NewsTaco. >> 

As you might expect, people who send remittances are not happy.

“I’ve already earned my money and paid taxes on it,” says Rafael Villalobos Jr., a community college administrator in eastern Washington state who regularly sends money to his parents in Mexico. “The whole thing with this administration is about not having to pay more taxes, yet I have to pay an extra tax on money that I’ve already earned when I give it to my parents just because they are coincidentally on the other side of the border.”

READ MORE 

Limitstogrowth

Subscribe today!

  • This field is for validation purposes and should be left unchanged.

Must Read

Coronavirus: Mexican wrestlers sew Lucha Libre face masks

Victor Landa April 23, 2020

Unable to compete due to coronavirus, Mexico’s Lucha Libre wrestlers have taken up sewing face masks. Social distancing means the iconic sport is on hold for now, so fighters need […]

Latinos: COVID-19 Disrupts Finances, Daily Life, Mental Health

Victor Landa April 6, 2020

COVID-19 doesn’t discriminate. But U.S. Latinos are more likely than all Americans to say the coronavirus pandemic changed their daily lives, and disrupts their mental health, finances, and jobs, according to new Pew Research […]

A Profile of Coronavirus and the Latino Workforce

Victor Landa April 13, 2020

*This article was originally published in the NALCAB Blog. Over the last month, the Coronavirus pandemic has ravaged the lives and well-being of all Americans. It has disproportionately impacted the most […]

Hispanics more likely than Americans overall to see COVID-19 as a major threat to health and finances

Victor Landa April 14, 2020

Hispanics are more concerned than Americans overall about the threat the COVID-19 outbreak poses to the health of the U.S. population, their own financial situation and the day-to-day life of their local […]

Coronavirus could ‘decimate’ Latino wealth, which was hammered by the Great Recession

Victor Landa April 16, 2020

Octavia Nieto worked for over 10 years as a pastry chef at a bakery in Princeton, New Jersey. Now with the business closed indefinitely, she relies on a part-time job […]

Latino Teens: Distance Learning Is a Giant Stressor amid Coronavirus

Victor Landa April 22, 2020

Latino teens are more worried than their peers that they won’t be able to keep up with school work or extracurricular activities amid coronavirus, says a new survey by Common Sense and […]

LATINX PLAYERS POISED TO BLOW UP THE 2020 NFL DRAFT

Victor Landa

Despite these uncertain times, the 2020 NFL Draft will proceed as planned. But because of the COVID-19 outbreak, the 2020 NFL draft will be held virtually for the first time […]

Government Relief Less Likely To Reach Latino Businesses

Victor Landa April 23, 2020

Latino communities may face a generational setback in growing wealth, as the pandemic-driven downturn exacerbates an already present gap in funding for their small businesses. Juan Rios sits among the […]