Posted on 03/04/2006 10:08:59 AM PST by radar101
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.
Mexico must secede.
It might go down easier among the latins if it is called a bribe rather than a tax.
People have waked up. Maybe the federal government will end its snooze.
Has anyone else noticed that Mexico is shaped like a colon?
No wonder it's leadership seems to have a hard time with clear-headed thinking.
and this is bad how?????
Please O please let this go through.
I have no idea where Mexico got the idea it has any kind of say in our imternal affairs, but it is time to shut them up with actions, not words.
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."
Excuse me? the mexican government has the audacity to demand we abide by their rules? Has this bill been passed? It better if House and Senate want to be voted back in to their cushy jobs.
Why let them send money in the first place if they cant prove citizenship? ehhh if we are to weak to kick them out or throw them in jail I guess its better than nothing.
A 50% tax would be very nice.
I agree, this tax (unless it is very low) will not raise money.
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.
My solution is to become like florida. No income tax, and a sales tax only. Everyone pays including illegals.
"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. Why not just bar illegals from using govt. services ?
It would be simpler and more effective than this silly tax.
Mexico can shove it up their Cancun.
But if they don't spend the money here, no sales tax is collected on it.
ping
Are these companies also going to be charged for each transaction? If so, who in Georgia is going to be checking compliance with this tax law? Will this law also apply to mere branches of companies that are headquartered elsewhere, and the wire itself might be actually initiated in, say, New York at corporate headquarters?
You can't bar them from using emergency rooms or schools.
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