Wednesday, January 31, 2007

CNN Lou Dobbs - video:Proposal to Tax Billions in Remittances About $45 billion was sent to Latin American from this country last year. Much of it originating from the hands of illegal aliens. And some border states have decided to propose taxes on those so-called remittances. They're planning to use the additional money to help secure their borders with Mexico. Immigrants in Texas send more than $5 billion home to Latin America each year. Most of that is money earned by illegal aliens. Now Texas lawmakers are proposing a 10 percent tax on those remittances. They want to use the proceeds, an estimated $500 million annually, primarily for border security. Remittances to Latin America are growing at an alarming rate. The Inter-American Development Bank estimates immigrants in America sent $45 billion home last year. An increase of 51 percent since 2004. More than half of the money goes to Mexico. Twenty-five billion dollars that helps prop up Mexico's shaky economy and drains capital from border states like Arizona, the nation's most popular illegal alien entry point. Some lawmakers there want to require immigrants to prove they have legal status and have paid taxes before they can wire money home. The ACLU opposes efforts to restrict illegal alien remittances, saying it would cause people to favor informal ways of moving money instead of using mainstream financial institutions.