Mexico Rejects US Tax on Remittances: Treaty Violation Sparks Outrage

Mexico Rejects US Remittance Tax, Citing Treaty Violation Mexico's Senate has voiced strong opposition to a proposed 5% tax on remittances from the United States, arguing that the measure violates a 1994 bilateral tax treaty. The proposed tax, part of a larger bill currently under consideration in the US Congress, has sparked outrage in Mexico, particularly in states like Chiapas, where remittances constitute a significant portion of the local economy. In Chiapas, remittances account for 15% of the state's economy, according to the video. The tax is seen as disproportionately impacting these already vulnerable communities. "This is not just about money; it's about the well-being of millions of Mexican families who rely on these remittances," stated Senator Sheinbaum, who has vowed to send senators to Washington to lobby against the bill. The Mexican government's stance highlights the potential economic and social consequences of the proposed tax, and the ongoing debate underscores the complex relationship between the two countries on issues of migration and economic cooperation.