by Gustavo Muro
Creating a map that show the estimated amount of remittances sent out from the US into other countries during the year of 2015, provides us with a clear understanding of the amount of monies sent from immigrants in the US. Utilizing data from the World Bank, I was able to cluster together received remittance totals by separated by continent.
The current regime in Washington DC proposes a tax on remittances to build a symbol of division in the form of a wall is an insult to citizens of Mexican culture. If a tax is levied from such a proposal, the backlash would affect immigrants and US citizens.
Honestly, the tax would be unjust for the simple fact the tax would disproportionately affect the working class.
In 2008 the top three countries receiving remittances were number one India, second China, and third Mexico. According to The World Bank, The average value of a single remittance to Mexico was between $340-$350 US dollars in 2007. An interesting observation is that increase in remittances have been seen to correlate with reduced homicide rates in the country that is — for every 1% increase in households receiving remittances in Mexico there is a 0.05% decrease in the homicide rate. Lowering the costs of sending remittances to other countries including Mexico would help fight poverty as well as being an effective method to reduce the organized crime rate according to a study from the ‘Inter-American Development Bank’.
The Trump administration has threatened Mexico with taxing remittances sent from the US to assist in funding for Trump’s proposed border wall. It would be counter-intuitive to de-rail efforts of Mexican and US officials who have been working to make money flows between the two neighboring countries more transparent. If remittances were to become taxed then senders of remittances may consider the use of other methods of sending money, such as physically smuggling it across border lines. Some have even suggested Mexicans might turn to a currency transfer medium such as ‘Bit Coin’ among others which is an online currency that eliminates banks and fees to transmit currency.a
A survey by Inter-American Dialogue of remittances to Mexico found that a majority, 67 percent in 2013, were sent by “undocumented” individuals living in the U.S.
Data gathered by the Mexican government and BBVA Research shows that in 2015, nearly one-third (29.6 percent) of all of the remittances sent from the U.S. to Mexico originated in California. Just over 14 percent was sent from Texas, and 5.1 percent from Illinois.
In 2015, remittances sent to Mexico totaled 2.3 percent of the country’s GDP, the data showed.
Forbes reported that the money sent from the U.S. to Mexico by migrants “replaced oil revenues as Mexico’s number one source of foreign income” in late 2015.
Mexico has relied upon immigrants to maintain families, communities, and in many cases municipalities.