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Colorado Hispanic Business Leaders Reject Remittance Tax

REACTIONS | Carla Colins, Jesus Carrillo, and Jessica Acosta. (Photos/El Comercio de Colorado)

THEY WARN THE TAX WOULD HURT MIGRANT FAMILIES AND LATIN AMERICAN ECONOMIES.

Newsroom El Comercio de Colorado Staff

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Three prominent Hispanic business leaders from Colorado have voiced strong opposition to the tax proposal promoted by former President Donald Trump, which includes a 3.5% tax on remittances sent from the United States to other countries. Carla Colins, president of the Latino Chamber of Commerce of Boulder; Jesús Carrillo, from the Colorado Hispanic Chamber of Commerce; and Jessica Acosta, director of the Hispanic Contractors of Colorado, all agree that this measure would be “harmful, unnecessary, and discriminatory.”

“Migrants not only contribute to this country’s economy through their labor; they also support millions of families beyond our borders. Punishing that effort with a tax is unacceptable and economically shortsighted,” said Colins, who also pointed out that much of the remittance money comes from workers who pay taxes and receive few equivalent social benefits. According to Carrillo, the plan “is yet another way to criminalize economic migration.”

Carrillo added that “this tax would not only affect the flow of money to countries like Mexico or El Salvador, but it would also directly harm working communities here in Colorado who strive to support their families under very difficult conditions.” Jessica Acosta emphasized that many Latino-led businesses would see their stability threatened since many of their employees — many of migrant origin — rely on sending money to their home countries. “The emotional and economic impact would be enormous,” Acosta stated.

Message from Mexico’s President

This expert in environmental projects also explained: “We’re talking about fathers, mothers, siblings, who send part of their paychecks every week. This proposal attacks the very essence of the immigrant community.” Mexico’s President Claudia Sheinbaum also firmly opposed the tax, though she acknowledged that the original 5% rate was reduced to 3.5% as the bill moved through the U.S. House of Representatives. “For now, the remittance tax rate has been reduced from 5% to 3.5%,” she said.

Sheinbaum added, “Nonetheless, we do not want any tax at all,” stating that the measure violates the 1994 bilateral treaty that prohibits double taxation between the two countries. The Mexican leader affirmed that dialogue would continue with senators from both parties to stop the legislation, which must still pass the U.S. Senate.

Remittances sent from the U.S. reached a record high of $64.745 billion to Mexico in 2024, becoming the country’s second-largest source of external income. In Central American countries such as Honduras and El Salvador, remittances account for up to a quarter of their GDP. As a result, opposition to the tax comes not only from governments but also from civil and business organizations that fear a direct impact on 40 million people in the U.S. and millions more across Latin America.