There’s a new proposal making noise across the border—and it’s got Baja’s name all over it. U.S. lawmakers are pushing for a 5% fee on money sent through remittances. That might sound like a distant debate in D.C., but here in Baja? It hits close to home.
Who Sends the Money?
Baja California—especially Tijuana—runs on a two-country rhythm. According to government data and INEGI, over 75,000 people live in Baja but work across the border in the U.S. Every day, they cross, earn in dollars, and spend or send money back home. Whether it’s covering rent, buying groceries, or paying school fees, those remittances keep thousands of families afloat.
So, what happens if those wire transfers suddenly come with a 5% tax?
That’s the question everyone’s asking.
The Proposal That Started It All
Last week, the U.S. House Ways and Means Committee gave the green light to a bill that would charge a 5% remittance fee. The catch? It applies only to people who aren’t U.S. citizens or legal residents. That includes visa holders and undocumented workers—many of whom pay taxes and contribute to the U.S. economy every day.
Supporters say it would fund border security. Critics say it’s a slap in the face to the same people holding up entire industries like agriculture, construction, and hospitality.
Sheinbaum Fires Back
President Claudia Sheinbaum didn’t hold back. She called the proposal “unacceptable” and “unconstitutional,” pointing out that Mexicans working in the U.S. already pay taxes—on both sides of the border, in many cases.
She also warned that this kind of policy could backfire. “This will only encourage informal money transfers,” she said, “and hurt the people who rely on them most.”
Mexico has already started reaching out to U.S. lawmakers to push back diplomatically—and loudly.
Will Baja Feel It?
Yes, but maybe not how you think.
Since so many people live in Tijuana but earn their income in the U.S., they often spend their dollars directly here, not through formal remittances. That daily, cross-border flow of people and money keeps Baja’s economy humming.
Still, if this proposal passes, families who rely on transfers from relatives deeper in the U.S.—say in Arizona, Nevada, or California—will feel the squeeze.
And if workers start using informal channels to dodge the tax? That could make things messier—and riskier.
What’s Next?
For now, the bill still has to make it through the full House, then the Senate, then land on the president’s desk. Even if it passes, it wouldn’t go into effect until 2026 at the earliest.
But the message has already been sent—and Baja is paying attention.
Your Turn
Do you work across the border and live in Baja? Would this change how you send or spend money? Let us know—this is your story, too.
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