A 3.5% remittance tax is approved by the US House and sent to the Senate

Despite last-minute revisions, President Donald Trump’s tax package was approved by the U.S. House of Representatives on Thursday. Among these, a 3.5% remittance tax was accepted rather from the 5% that was first suggested. After this, the bill will likely be discussed and passed by the Senate.

«The rules committee approved the reconciliation package with an amendment that includes a reduction of the remittance tax from 5% to 3.5%, although they made major cuts to Medicaid and tax incentives for clean energy,» stated Esteban Moctezuma, the ambassador of Mexico to the United States.

Many of Trump’s populist campaign pledges, including more funding for the military and border security, as well as additional tax advantages on tips and auto loans, will be fulfilled if the bill is approved on current terms. However, the impartial Congressional Budget Office estimates that it would increase the federal government’s debt, which is currently $36.2 trillion, by around $3.8 trillion over the course of the following ten years.

Remittances to Mexico reached US$14.269 billion in the first quarter of this year, a 1.3% increase over the same time in 2024.

However, rather than imposing a 5% tax on remittances as initially suggested, the U.S. House of Representatives adopted a 3.5% tax. The Mexican government has already responded to this tax; lately, Secretary of Economy Marcelo Ebrard noted that it is in violation of the T-MEC.