A Shift in Financial Support: Remittances to Mexico Experience a Dip
In a notable development, the flow of funds from Mexican immigrants in the United States to their homeland has decreased, impacting the financial well-being of numerous families in Mexico. This shift marks a significant change in an essential economic support system.
The amount of remittances sent to Mexico saw an approximate 5% decrease from May of the previous year to May of the current year. This decline, although notable, is less severe than the 12% reduction observed in April compared to the same month in 2024.
The United States remains the primary source of these remittances, and a new tax policy is poised to affect them further. A recently passed Republican legislative measure introduces a 1% tax on certain remittances, particularly those sent in cash, which constitutes a smaller portion of the total funds transferred to Mexico.
In response to these changes, the Mexican president has openly criticized the taxation of remittances. The administration has expressed its commitment to compensating Mexican nationals in the U.S. who are impacted by this tax policy.
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