Mexicans and other South Americans living and working in the United States will be forced to pay for Trump’s border wall after the Mexican government rejected several requests and later aggressive demands from Trump to pay for his border wall project.
Trump and his Republican cronies have a devised a strategy in which they will target South American expatriates and immigrants and automatically take money from them through remittances and money transfer companies like Western Union, Money gram and others.
Mexicans and other South Americans working in the US send money back to their families, friends to the tune of billions of dollars.
In 2016, Mexicans sent back home $27 billion in remittances. If other South American countries are added to the mix, the mount could come to or even exceed $120 billion.
Trump got his Eureka moment while looking at the remittances data and will now impose heavy taxes on every dollar transferred South of the US border.
“They will live very, very frugally to save as much money as they can to send it back home,” Rep. Mike Rogers, R-Ala., told the Washington Examiner.
Rogers introduced a bill in March to levy a 2 per cent tax on all cash transfers from “anybody who remits to South America.” The legislation, which is currently stuck in committees, would net a little more than $1 billion a year and “comport with President Trump’s pledge to build a wall and make [Mexico] pay for it.”
“I went over and met with the deputy chief of staff Rick Dearborn in the White House about two weeks before we left for recess and he told me that they’re trying to come up with a package of bills and hopes mine will be part of that,” Rogers said in a phone interview Wednesday. “My understanding is that they’re trying to find a way to make sure that the money comes from money that would have gone to Mexico otherwise.”
Originally, Trump had planned to totally ban Mexicans from sending money abroad but his advisors told him it be counter-productive and he then settled on imposing a border wall levy on the money they send to their families. Mike Rogers had proposed a 2% tax but Trump thinks it can be increased to 4% to generate more money so the wall can be built quickly.
This border wall tax would be an extra and burdensome tax on people sending money abroad as they already pay income taxes when earning salaries, then pay a charge to the money transfer companies which pay taxes to the government.
To read more on this story, follow this link to the Washington Examiner