Why does the U.S. tax code contain a special encouragement for our taxpayers to transfer money to Mexico? – IOTW Report

Why does the U.S. tax code contain a special encouragement for our taxpayers to transfer money to Mexico?

AT: Why does the U.S. tax code contain a special encouragement for our taxpayers to transfer money to Mexico?  Has consideration been given to using this provision as a bargaining chip in connection with our trade and immigration negotiations with Mexico?

Specifically, the Code creates a special provision with respect to cash transfers to residents of Mexico (with the same applicable to Canada) that are not available for transfers of funds to relatives living in any other country outside the U.S.  According to IRS Publication 501, Table 5 on page 12, the (U.S. taxpayer’s) eligible relatives include:

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10 Comments on Why does the U.S. tax code contain a special encouragement for our taxpayers to transfer money to Mexico?

  1. Western Union used to send telegrams. Now I can’t get to the customer service desk at my local grocery store because of all the Joses and Rositas lined up to wire money back to the home country every time I go there.
    Somebody’s making mucho dinero out of all this, I can tell you that right now. And it ain’t me.

  2. “You can’t claim a person as a dependent unless that person is a U.S. citizen, U.S. resident alien, U.S. national, or a resident of
    Canada or Mexico.
    1”

    Why the hell is this in there? Why are we subsidizing people in Mejicco and Kranada?

  3. Abolish the exemption.
    I dropped a comment on our President’s website, proposing a modest 1% surcharge on wire transfers to Mexico to fund the wall. As Teddy K used to say, less than the price of a big mac, OR Tom Daschel’s muffler.

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