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Senator Schmidt Proposes 20% Remittance Tax After Mexican President's Threats Over Border Policy
Senator Schmidt confronts Mexico's president after she threatened to "mobilize" in response to proposed taxes on remittances sent by illegal immigrants. What started as a House proposal for a 3.5% tax escalated when Schmidt doubled down, suggesting rates up to 20%. With remittances representing 4% of Mexico's GDP, Schmidt argues the United States cannot continue serving as Mexico's piggy bank while the country enables mass migration. The senator connects these threats to border security provisions in the reconciliation bill and explains why taxing remittances is crucial to stopping the financial incentives driving illegal immigration.
Senator Schmidt is working to significantly increase taxes on remittances sent by illegal immigrants back to Mexico. The House version of the reconciliation bill included a 3.5% tax on these transactions, but Schmidt filed legislation to double that rate on the Senate side. The proposal aims to accomplish multiple objectives: discouraging illegal immigration, ensuring fairness since many recipients are paid under the table and don't pay income taxes, and generating revenue for the United States.
The issue gained prominence when the president of Mexico issued what Schmidt characterized as a strange threat, warning that if the remittance tax goes into effect, Mexico would "rise up." Schmidt responded on social media platform X by suggesting the rate should be 15% instead. When the president of the Mexican Senate commented on the issue, Schmidt raised his proposal to 20%, signaling he would continue escalating in response to continued threats.
Mexico's Financial Dependence on U.S. Remittances
Schmidt emphasized that remittances from the United States represent approximately 4% of Mexico's GDP, creating a substantial financial incentive for the Mexican government to maintain the status quo of mass migration. His position is clear: the United States of America is not Mexico's piggy bank, and as a sovereign country, America has every right to tax these transactions.
The senator explained that while there's nothing inherently wrong with people legally in the country sending money home to family members in places like Vietnam, the remittance system has become a primary subsidy enabling mass migration from Mexico. The Mexican government is financially incentivized to keep the invasion going, which is why addressing remittances is so important to breaking the cycle. The goal isn't cruelty but rather removing the financial incentives that have caused the Mexican government to turn a blind eye to illegal immigration for years, allowing tens of billions of dollars to flow out of the United States.
Interpreting Mexico's Threats
The Mexican president's statement that Mexico would "mobilize" if the remittance tax passes raised serious concerns. Schmidt acknowledged he doesn't know exactly what she meant by the threat, but suggested it doesn't require much speculation given the context. The mass migration that demands mass deportations is fueled by an international NGO network that, adding insult to injury, American taxpayers were subsidizing through USAID in many instances.
The timing of these threats is particularly significant. The Mexican president sent her signal around the same time riots were breaking out in Los Angeles, with people waving Mexican flags in American streets. Schmidt sees this as no coincidence, interpreting it as a threatening message that Mexico could somehow mobilize forces or support within the United States.
The president of the Mexican Senate also weighed in, mocking Schmidt in a Spanish-language video where he used phrases like "fuego" and "gasoline," suggesting he was throwing fuel on the fire. Schmidt pointed out this represents the third data point in a pattern of Mexican officials threatening the United States. Under the Biden administration, a Mexican official similarly warned that if aid money wasn't provided, the U.S. wouldn't like what happens. That story received little coverage, and Biden ultimately flooded Mexico with capital.
Are These Actual Threats Against America?
When asked directly if Mexican officials are threatening the United States, Schmidt responded that it certainly seems that way. While he can't say exactly what they mean by "mobilize" or throwing fuel on the fire, placing these comments in context paints a concerning picture. An American city was burning with people waving Mexican flags while these officials made veiled threats about what would happen if the U.S. exercises its sovereign right to tax remittances.
Schmidt believes this is precisely why President Trump's leadership is so important, particularly in getting the National Guard deployed to help end the riots. The senator sees the current situation as part of a larger pattern dating back to the end of the Cold War, when American leadership from both parties ceded important aspects of sovereignty related to trade, foreign conflicts, and sending American soldiers to fight in foreign wars.
The Globalist Mindset and American Sovereignty
Schmidt connected the remittance issue to what he called the globalist "end of history" mentality, where American leaders thought everyone would become democracies and adopted a wandering foreign policy. This led to American money being spent on ridiculous programs like LGBTQIA plus Sesame Street in Iraq, as exposed through Doge investigations.
This globalist mentality created an expectation that people in other countries are entitled to American money, which Schmidt firmly rejects. The United States can make decisions to provide aid or support only if it furthers American interests, but other countries don't just get American resources automatically. America is not the piggy bank or patron for ridiculous causes around the world, and certainly shouldn't be subsidizing efforts that brought 15 million people into the country illegally over the past four years.
Schmidt sees the globalist mindset, mass migration, and these Mexican threats as all tied together. Foreign officials are upset that the United States is finally changing direction under President Trump's leadership and reasserting sovereignty.
The Big Beautiful Bill and Border Security
The reconciliation bill, which Schmidt calls the "big beautiful bill," has become even more important in light of the riots and Mexican threats. The border provisions and immigration law enforcement aspects are more critical than ever, as demonstrated by what's happening on television screens every night. People are actively trying to prevent ICE from enforcing immigration law and conducting deportations, which is exactly what President Trump ran on.
The bill would provide more detention facilities, more ICE agents, more enforcement efforts, and enable more deportations. Schmidt says the House did great work on the legislation, and while the Senate is looking to find additional savings to make it even better, everyone is united on getting it done. The bill contains many of President Trump's priorities that are very popular with the American people.
The Senate is aiming for a July 4th passage, which would allow a couple of weeks to finalize everything before August. Schmidt expressed optimism about the timeline and the bill's prospects.
Senate Concerns and Cost Savings
Schmidt explained that finding cost savings is a priority as the bill moves through the Senate. One major concern is the State and Local Tax (SALT) deduction provisions from the House version. Nobody in the Senate supports what was done with SALT, viewing it as subsidizing the terrible policy decisions of blue state governors in California, New York, and Illinois. This provision represents hundreds of billions of dollars to reward states for bad governance.
However, Schmidt acknowledged the practical reality that House Speaker Mike Johnson needs those provisions to get the votes in the House. The Senate understands this dance but is still looking for ways to find savings, potentially hundreds of billions of dollars, without subsidizing states like California under its current leadership or Illinois under Governor JB Pritzker.
Other revenue-generating provisions include the remittance tax, which would bring in billions of dollars by taxing money sent abroad by illegal immigrants. The Senate is working to find the right balance that maximizes savings while delivering on President Trump's promises, and Schmidt remains very optimistic they'll get there.
Unlocking Economic Growth
Beyond the reconciliation bill, Schmidt emphasized the need to unlock 3-4% economic growth through drilling for energy and lower tax rates. He sees pent-up investment demand waiting to be unleashed in America, driven by artificial intelligence and a blue-collar boom that's ready to happen.
The reconciliation bill is just one piece of the larger picture. There are also rescissions packages to codify Doge reforms, the normal appropriations process for discretionary spending while reconciliation handles mandatory spending, and President Trump's upcoming actions to rebalance trade and stop America from getting ripped off by other countries.
Schmidt believes that once fairer trade deals are achieved with countries that have been exploiting the United States, significant economic growth will follow. Putting all these elements together—if everything gets done this year, which he's confident will happen—Americans will see the golden age that President Trump has talked about, with enough runway for results before 2028.
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