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Monday, April 03, 2017

How Mexicans will pay for the wall

While President Trump solicits bids on designing and building a 30-foot wall along the Mexican border. House Republicans are working on a plan to pay for it.

By taxing Mexicans, including criminals who hopped the border illegally.

That makes excellent sense to me.

The tax would be on the biggest source of foreign money for Mexico -- welfare.

Excuse me, money Mexicans send back home to their families.

The money is sent by Western Union and other financial services. Technically, the money is called remittances.

The narrative is that Mexicans get good paying jobs here and send some of the money back home to relatives.

The reality is a lot of that money comes from off-the-books work, as well as food stamps and other forms of welfare.

Many states knowingly sign up illegal aliens for welfare programs because it is a money maker for the state. Washington provides food stamp money for California, which is used at stores and also to buy other non-food items such as heroin.

Sanctuary cities not only provide cheap housekeepers and landscapers for the rich, but potato chip buyers for convenient store owners.

Some of that money is included in the $25 billion a year wired to Mexico.

How odd that after 100 years or so of socialism, Mexico must steal from the capitalists up north to provide welfare for its people. Maybe nationalizing the oil industry wasn't such a good idea.

Republicans want to tax the remittances, and have Mexico pay for the wall.

From the Washington Times:
A group of House Republicans on Thursday introduced the first major bill to fund President Trump’s border wall, saying the government could collect billions of dollars by imposing a 2 percent fee on all the money Mexicans and other immigrants send back home.
Estimates vary, but remittances from those in the U.S. to their relatives back home could top $130 billion a year. A 2 percent tax could net more than $2 billion a year if it applied to all money regardless of who’s sending it.
“This bill is simple — anyone who sends their money to countries that benefit from our porous borders and illegal immigration should be responsible for providing some of the funds needed to complete the wall,” Rep. Mike Rogers, Alabama Republican, said in a statement. “This bill keeps money in the American economy, and most importantly, it creates a funding stream to build the wall.”
Do it.

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  1. Susan Rice's Russian Stylist Russell G.April 3, 2017 at 12:27 PM

    Early talk (during the campaign) was that it would be close to 4%. They've apparently scaled it back a bit. There's also some higher value transfers quietly going through American banks that they need to nail down, but no one is talking about that. That leads me to suspect that when NAFTA is "re-negotiated" there will be some pretty hefty resumptions of import taxes from MX--aside from Ryan's goofy borne-to-fail tax he's trying to ram through con-gress; USCoC will never allow that.

    Either way, that GDP of MX is heading southward--better them than us.

  2. A plan that is so elegant in its simplicity. What took Congress so long? - Elric

  3. You mean this can count as a win for Trump even without having a check signed by the president of mexico and countersigned by the UN? What will the nevertrumpers say?

  4. The money NOT spent on welfare, schools for illegals, less social workers/bureaucrats signing up and paying out services to illegals, law enforcement, prisons, etc can be sent instead to the WALL fund. Note: Picking up illegal aliens at the courthouse BEFORE their hearings or processing them for deportation while they are serving time in jail or prison will cut down on probation officers time, judges and court staff time, prison staff, jail staff, etc.Money NOT being spent on illegal aliens IN the US can be spent on the WALL to save even more money. Preventing illegal aliens saves money.

    1. Getting jobs held by illegals back to U.S. Nationals would also cut welfare and food stamp hand outs. The problem that exists is that so many of the kids won't work hard and do the jobs that need done, hence the illegals filling the niche. We need to get these kids a work ethic. Starvation works wonders on that.

  5. I thought Republicans were supposed to understand economics. Put a 2% tax on remittances to Mexico and someone will set up a business sending them through a third country.

    A wall by itself is useless because ladders are cheap.

    The don't need a wall anyway. All they have to do is enforce existing laws, especially laws against employing illegal aliens. When the work dries up they will go somewhere else.

    1. Let them try. Most other countries will charge them more for the transit. This kind of thing cannot be done anonymously, either.
      In fact, this might be the reason for the 2% rate, anyway. It will cost more to subvert the law than to comply with it.

    2. Any remittance to a foreign country over, say, $1000, should have to be reported to the IRS by the company that does the transfer, including information on the name, address, and taxpayer ID number of the sender, as well as the name and address of the recipient (probably will be a bogus address or a p.o. box, but let's not make things easy for them).

    3. Money going in to countries like Honduras face a 10% fee from their government. A 2% tax is small enough that they won't go looking else where, and incrementalism would work a miracle. Increase it by 1/4 point every six to nine months.

  6. 2%? Absurd! Stupid! Why isn't it at least 15%? It should be a withholding tax, just like the withholding imposed on a person's salary, lottery winnings, etc., etc., etc. If an illegal wants to get the withheld taxes back, let him file a Federal income tax return and prove the money should be refunded. Most of those remittances, I'd bet, are never declared as taxable income and no income tax is ever paid on them.

    1. YES INDEED! You are 100% correct.

    2. Here in Kansas the illegals all have bogus IDs. They get taxed on the income if it is from a restaurant or business, but since the name and SSN are fiction no one can ever file a tax return legally. During the Soetoro years they gave a wink to that and let them defraud the IRS of billions.

  7. Not like Trump has to worry about losing a single vote over the tax.

    Add another 1% to compensate crime-victims, and it sounds good to go.

  8. I've been advocating this for years. I've written that it should be 10%. GOC

  9. 2%? pussies, how about 50%? That way we could not only fund the damn thing, but pay for in perpetuity.