By Rick Oltman, February 11, 2019
Mick Mulvaney, Director of the Office of Management and Budget (OMB), and acting White House Chief of Staff, said Sunday morning that President Trump will get the border wall with or without Congress, which probably means that he will take however much money the Democrats will offer in the budget talks, and then get money from some other source, perhaps the Defense Department, to build the wall.
So the Democrats could offer $2 billion, less than half the President wanted leading to the recent government “shutdown.” Let’s say the President takes it, and then looks elsewhere for additional funds.
Here’s a source of money that can be taxed, that is abundant and constant: remittances.
The United States is currently the largest source of remittances in the world, sending out of the country a total of $56.3 billion in 2015. With our economy booming in the last two years, that number has to have increased.
Every year an estimated $30-$40 billion is sent to Latin America, most of it to Mexico, by workers here in America.
Here’s the plan to get money for the wall: tax the remittances.
Normally one observes that higher taxes results in less money for our consumer economy. But in this case, this money, over $56 billion a year, is earned in our communities but not spent in our communities. So there is no lost purchasing power in our economy.
A 5% tax on $56 billion would provide $2.8 billion in one year. If only the money being sent to Mexico and other Latin American countries was taxed ($40 billion), that would provide $2 billion a year. In just two years, the wall/fence would be funded, with additional funds from future years available for more walls, increased border security, sensors, drones, cameras, planes, helicopters, etc.
Five percent is not too high. More than that, those sending money out of the country would find ways around the tax.
Tax may not be the correct characterization. Taxes must begin in the House of Representatives and given the, let’s just call it “very entertaining” behavior of some members of the House, they probably wouldn’t pass the required legislation. So how about calling it a transaction fee levied by some part of the bureaucracy?
There are other ways. States could do it for the federal government, keeping part of the take for their own law enforcement needs.
Oklahoma taxes remittances now. Other states have considered similar legislation.
The wall is definitely needed, and walls do work. And with Gallup now estimating 42,000,000 people want to flood into America, we definitely need the wall.
Taxing remittances is a way to get it paid for.
You have enemies? Good. That means you’ve stood up for something, sometime in your life. [Winston Churchill.]
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