What’s the real cost of open borders? For American taxpayers, the answer might be hidden in the billions sent overseas.
At a Glance
- The President of Mexico urges U.S. lawmakers to exempt Mexico from a proposed remittance tax.
- The tax targets funds sent by non-U.S. citizens, potentially generating $22 billion for the U.S. in the next decade.
- Mexicans sent a record $64.7 billion in remittances to Mexico last year alone.
- The proposal raises privacy concerns, potentially creating a two-tiered system.
Open Border Policies: Who Really Benefits?
Mexican and Central American economies are raking in billions thanks to U.S. border policies. With a staggering $63 billion in remittances sent to Mexico, one must wonder: are these policies designed more to benefit foreign nations than the hardworking U.S. taxpayer? The proposal to tax these remittances has Mexican officials, including President López Obrador, scrambling for exemptions. After all, this money represents a significant portion of their economy, so who can blame them for wanting to protect it?
The Left has crafted an art out of promulgating policies that, at face value, appear innocuous but invariably hurt Americans. With Mexico now urging exemptions from a 3.5% proposed tax on international transfers, one questions the depth of foreign influence on U.S. policy-making. It’s perhaps a convenient distraction while Americans remain blissfully unaware of the economic strain these policies impose on them.
Economic Redistribution: A One-Way Street
Let’s talk numbers: $64.7 billion flowed out from the U.S. just to Mexico last year, with more millions sent to other Central American countries. This isn’t just philanthropy—it’s economic redistribution at its finest, served with a side of irony to the hardworking American taxpayer. “One of the main reasons people come here is to work and send money home,” reminds Mark Krikorian from the Center for Immigration Studies, emphasizing the financial migration driving many across the border.
“One of the main reasons people come here is to work and send money home,” – Mark Krikorian
And yet, while these foreign governments pocket billions in remittances, it’s the American family feeling the squeeze. Those billions could’ve bolstered our economy or funded critical domestic programs. Instead, they escape across the border as U.S. infrastructure falters, while citizens ponder why they ‘just can’t get ahead’.
Proposed Remittance Tax: A Step Forward or Backward?
In the debate over the proposed 3.5% tax on remittances, American lawmakers face a serious decision. The tax could generate $22 billion over the next decade for the U.S. treasury, potentially being a bold move towards correcting an economic imbalance. However, concerns about privacy and enforcing such a policy rattle the conversation. Nicholas Anthony from the Cato Institute warns, “Individuals can avoid the tax if they prove they are U.S. citizens or nationals and use a government-approved service provider to send the funds.” Do we want a system that requires surrendering personal information just to avoid a tax?
“Individuals can avoid the tax if they prove they are U.S. citizens or nationals and use a government-approved service provider to send the funds…” – Nicholas Anthony
On one hand, the tax could serve as a check on illegal immigration while prompting funds to contribute to our own economy. On the other, it risks setting up a two-tiered system of fiscal monitoring and potential privacy intrusion. It’s a conundrum, reminiscent of those convoluted Washington policies that produce more headaches than solutions for the voters who foot the bill.
