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American tax law subsidizing remittances to Mexico

Article author: 
Harry Hunter
Article publisher: 
American thinker
Article date: 
March 7, 2017
Article category: 
National News
Medium
Article Body: 

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

The provision allows the U.S. taxpayer to claim an exemption and deduct $4,050 from taxable income for such relatives living in Mexico...

The result of this special tax provision is certainly a greater outflow of funds from our country to Mexico than otherwise...

Remittances to Mexico from the U.S. exceed $25 billion per year...