Mexican government opposes remittance provision in Trump tax bill

The House Republican bill to enact President Trump's domestic policy agenda contains a provision that has prompted opposition from the Mexican government — a tax on cash payments sent by non-U.S. citizens to family members in their home countries.

The payments, known as remittances, would be subject to a 5% excise tax that would encompass more than 40 million people, including green card holders and nonimmigrant visa holders, such as people on H-1B, H-2A and H-2B visas. U.S. citizens would be exempt. 

In a May 13 letter to the leaders of the House Ways and Means Committee, Esteban Moctezuma Barragán, Mexico's ambassador to the U.S., urged Chairman Jason Smith and Ranking Member Richard Neal to reconsider the proposal.