Thread: Georgia to tax money transfers angers Mexico

By Greg Brosnan

MEXICO CITY (Reuters) - Mexico complained on Thursday that a bill in Georgia's state legislature to tax the hundreds of millions of dollars that illegal immigrants wire home would unfairly hurt Mexicans working north of the border.

Sponsored by Republican lawmakers who charge that illegal immigrants use basic health and education services without contributing to them, the bill would force anyone unable to prove their legal status to pay tax on their wire transfers.

An estimated 11 million Mexicans living in the United States sent home about $20 billion to their families last year, more than all the foreign direct investment in the country and a major pillar of Mexico's economy, especially in poor areas.


Similar to a bill in Arizona's legislature, the Georgia measure has passed the state's lower house and is awaiting review in its Senate.

"The recently approved initiative ... is unjust because it discriminates against people of Hispanic origin in general and Mexicans in particular," Mexico's foreign ministry said.

The foreign ministry said it was also following the Arizona bill's progress and could take legal action should either proposal become law.

They bills are among several initiatives reflecting growing anger in the United States, especially among Republicans, about the steady flow of illegal immigrants from Mexico.

The U.S. House of Representatives recently approved a high security border fence to keep out illegal immigrants. The proposal has aggravated tensions between two neighbors increasingly locking horns over U.S. immigration policy.



Mexico's normally soft-spoken Finance Minister Francisco Gil slammed the bills this week, and an influential migrant representative said it was a foolhardy attack on workers he said were helping the economies of both countries.

"Unfortunately this is a trend," said Candido Morales, director of an institute for Mexicans living abroad. "Making life difficult for people who aren't legal, but who contribute to both the U.S. and Mexican economies.

While Georgia's bill would only tax illegal immigrants, Arizona's would tax all wire transfers out of the country.

Critics say the laws would be ineffective, and that migrants would simply ship money home by less secure means.


Supporters of the bills in Georgia and Arizona argue something must be done to salvage revenue from hundreds of millions of dollars they say slip out of their states untaxed.

"The reality is that a tremendous amount of undocumented illegal immigrants are in this country earning money and not paying any taxes," Rep. Calvin Hill, a Georgia Republican who sponsored his state's bill, told Reuters.

"They are utilizing the vast resources of the state but not financially contributing in any way," said Hill, who estimated $1 billion was leaving the state every year in untaxed remittances from illegal immigrants alone.

Arizona officials said the money could beef up security along its border with Mexico and help build the security fence. Hill said it would go into Georgia's indigent health care and education which illegal immigrants often use themselves.

"Now for the first time these people will have an opportunity to partially pay for these services," said Hill. "This has nothing to do with being against immigrants.

http://today.reuters.com/news/articlene ... cap=&sz=13

If Mexico is mad, Im glad!!

Originally Posted by DcSA

If Mexico is mad, Im glad!!

Right you are DcSA.

Does anyone know if this has gone any further than the talking stage? Some feel the sticking point is targeting one group of people which may make it unenforceable.

AZ implemented a similar tax that is more challenge-resistant, by applying it across the board.

I do so hope GA is able to implement a law with wording that will be very difficult to challenge. The revenue generated will help offset some of the services provided by those who are taking advantage of loop holes.

States and Counties impose sales and use taxes and surtaxes on a regular basis as a means to fund programs that can't be included in regular budgets.

Unfortunately, the 5% tax was dropped in conference.

The bill does have final passage, and awaits the Governor's signature.