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Hickenlooper: “How Many Times Are We Going to Punish Those Who Work?”

REACTION TO THE REMITTANCE TAX | Senator John Hickenlooper. (Photo/El Comercio de Colorado)

COLORADO SENATOR OPPOSES REMITTANCE TAX, CALLING IT UNFAIR AND HARMFUL

Newsroom El Comercio de Colorado

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U.S. Senator John Hickenlooper, representing Colorado, voiced strong opposition to the proposed new tax on remittances pushed by the Trump administration. In a conversation with reporters, the senator was emphatic: “How many times are we going to punish those who work? You already pay taxes when you earn the money, and now they also want to charge you for sending it to your family? I’ve never seen anything like this in this country,” he said.

Hickenlooper criticized what he sees as a contradiction in the government’s rhetoric:
“This administration claims to oppose taxes, but it’s hitting those who work the hardest — those who send support to their families in Argentina, Africa, Asia, or Mexico. If you pay taxes here, you should be able to freely send your money to your loved ones.”

What Is the Tax About?

The new 3.5% remittance tax was approved by the House of Representatives as part of the budget bill known as the One Big Beautiful Bill. It would affect all individuals without U.S. citizenship, including permanent residents, visa workers, international students, and those without regular immigration status. Only U.S. citizens would be exempt. If the Senate also approves this measure, the tax would go into effect on January 1, 2026.

What Would the Impact Be in Colorado?

Colorado ranks third among states that send the most money to Mexico. In 2024, according to BBV data gathered by the Bank of Mexico, $2.53 billion in remittances were sent from Colorado to Mexico, representing 4% of the national total. The majority of these remittances come from migrant workers, many of them without legal immigration status, who would be directly affected by the new tax.

This tax would have a direct economic impact on thousands of Mexican families who rely on these transfers for basic needs. It would also affect small local businesses that provide money transfer services and could encourage the use of informal channels, increasing the risk of fraud and losses. Business leaders have also rejected the proposal, saying that the tax “punishes family solidarity.”