Report: White House Weighing Mexican Remittance Fee To Pay for Southern Security Wall…

This is a little funny.  Back in 2015 we originally shared an easy peasy way to pay for the border wall by charging a 4% remittance fee on wire transfers to Mexico.  With more than $25 billion (2015) in Western Union transfers, more than Mexico’s entire oil and energy sector combined, a 4% U.S. surcharge on remittances creates $1 billion revenue annually.

The U.S. Treasury already has a similar process in place for Cuban Remittances and Western Union compliance affidavits.  The remittances to Mexico have now jumped to $27 billion in 2016.  Making the remittance fee even more feasible.

WASHINGTON – President Trump is mulling a tax on cash transfers between immigrants in the U.S. and their relatives in Mexico as a way to fund his promised border wall without forcing American taxpayers to open their wallets, according to sources familiar with the proposal.

Trump first floated the idea of taxing or halting person-to-person wire transfers, known as remittances, during his bid for the White House. A two-page memo released by his campaign last April described a plan “to compel Mexico to pay for the wall” by preventing immigrants from wiring money outside of the U.S. unless they can prove their legal status to law enforcement authorities.

Because the Mexican economy has become so dependent on wages sent home by migrant workers, which surpassed oil revenues as its leading source of foreign income in 2015, Trump said he could convince the country’s leaders to make a “one-time payment of $5-10 billion” toward his border wall by threatening to stop the annual flow of billions of dollars from the U.S. to Mexico in the form of cash transfers.

In 2016, Mexican immigrants living in the U.S. sent $27 billion to family members and friends in their native country.  (read more)

[2016] Even if President Donald Trump does not renegotiate any of the $50 Billion trade imbalance we have with Mexico; and if you only target the remittance dollars ($25 billion in 2015) which are vital for the Mexican economy, you can see how easy it would be to get Mexico to pay for the border wall.

Federal Budgets are fixed on ten year projections. In order for an expenditure to be revenue neutral the revenue must meet or exceed the expenditure over a 10-year period.

If you take the $25 Billion in outbound remittances (2015), now $27 Billion (2017), and you apply a small 4% surcharge for each wire transfer to Mexico, that surcharge would net $1+ Billion/year.   Multiplied over ten years (budget requirement) that means $10 Billion into the U.S. treasury from the surcharge fee.

$10 Billion in revenue.

 

 

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148 Responses to Report: White House Weighing Mexican Remittance Fee To Pay for Southern Security Wall…

  1. Paco Loco says:

    It’s a no brainer!

    Liked by 29 people

    • MfM says:

      I think it should be for ANYWHERE south of our border, not just Mexico!

      Liked by 47 people

    • TPW says:

      Is this something Congress has to be involved in…..if so…..kiss it goodbye……

      Liked by 1 person

    • fleporeblog says:

      Always has been from Day 1! That is why our Lion told us not to lose sleep during his rally in the Spring about the WALL! He told America that it was going to get done easily. Mexico was provided an opportunity to decide which way before our President was going to decide for them.

      I actually see this as an incredible strategy! What politician in their right mind would vote NO to such a bill. Are you going to defend illegals that none of their money should be touched because of the ramifications to their family in Mexico? Good luck with that argument on voting NO! This would also take the need for funding away from the Budget Battle. Use it as leverage to get other concessions for walking away.

      I actually hope only 40 or 50 percent of the WALL is completed by 2020. Use it as a campaign talking point to say that if I am reelected, the WALL will be 100 percent completed. OUR LION is the WALL right now!

      Illegals will not say the hell with your tax I am going to go back and bring it myself. They know they aren’t getting back in! Plus they may think our President loves the tax and won’t go after them. It might encourage the MORONS to send even more!

      Liked by 4 people

      • nimrodman says:

        “Illegals will not say the hell with your tax I am going to go back and bring it myself.”

        Well, Border Patrol can also interdict those leaving as well as entering. If by transportation carriers such as airlines, there’s a form for international arrival and departure (I think) that asks if you’re carrying more than – what is it? – $12,000?

        Don’t know what the penalties are for answering that falsely, perhaps seizure is one of the options?

        And out on the borderland, Border Patrol could interdict – I’m speculating – under the suspicion that drug money is being transported back to Mex. If someone is interdicted, and if Border Patrol are careful to secure a legal search where they establish probable cause (could be as simple as getting evasive answers, I’d speculate), then confiscate if allowable.

        Also, there’ll be a black market created to haul money back across the border, so step up inspections of trucks and cargo. Again, drug money would be the justification.

        If any of this is possible, perhaps the entire PRINCIPAL can be confiscated, not just a 4% tax.

        I think Sessions may have had some of these aspects in mind when re-authorizing “forfeiture of assets” recently.

        Yes, I understand the pitfalls, particularly as it’s been abused in the past.

        But if administered in the nation’s interest I can see beneficial applications. Just curb the abuses.

        Liked by 9 people

      • TreeClimber says:

        Any Congressman in a Southern state hoping to get the illegal vote would vote against it.

        Liked by 2 people

      • Ploni says:

        The first, most important action is to move the illegals out.

        All of them, including children and babies.

        Threaten them that if they don’t first self-deport they forever will be banned from applying for American citizenship.

        I view their entering into the United States as a deliberate invasion coordinated with the collusion of the Mexican government and the Mexican criminal cartel terrorists.

        We are not China. We are not Mexico. We are a nation of laws, G-d-given and natural and formulated by clear-thinking, civilized men and women.

        There should be no negotiation.

        Liked by 7 people

        • G. Combs says:

          They are LITERALLY an INVASION FORCE!

          Their schools teach in their “chicano studies” — to invade and weaken US to “take back their Mexico”

          MEChA groups exist on 90 percent of the public high school, college and university campuses in the Southwestern United States.
          (wwwDOT)mayorno.com/WhoIsMecha.html

          This is the real La Raza, which receives federal funds to the tune of 30 million in CA alone.

          […]Chicano is our identity; it defines who we are as people. It rejects the notion that we…should assimilate into the Anglo-American melting pot…Aztlan was the legendary homeland of the ztecas … It became synonymous with the vast territories of the Southwest, brutally stolen from a Mexican people marginalized and betrayed by the hostile custodians of the Manifest Destiny.” (Statement on University of Oregon MEChA Website, Jan. 3, 2006)
          We are a bronze people with a bronze culture. Before the world, before all of North America, before all our brothers in the bronze continent, we are a nation, we are a union of free pueblos, we are Aztlan. For La Raza todo. Fuera de La Raza nada.

          “That closing two-sentence motto is chilling to everyone who values equal rights for all. It says: “For The Race everything. Outside The Race, nothing.”[…]”
          http://humanevents.com/2006/04/07/emexclusive-emthe-truth-about-la-raza/

          This is the intention of La Raza:

          They explicitly intend to remove all people not of “The Race” in this area. Here is the extent to which they have achieved infiltration of these areas.

          Jose Vasconcelos who died in 1982, is the Nazi Propagandist behind La Raza Mexican nationalism. Like Soros, Jose was on the Nazi German payroll during WWII. La Raza, Spanish mexicans, with a dash of indian is the Mexican equivalent of the Nazi “aryan” Race. La Raza Cosmica is the Mexican equivalent of Hitlers Mein Kemp written during the same time period.

          Liked by 4 people

          • andyocoregon says:

            Hmm, why could i Reply to this post, but not “Like” it?

            Like

          • Ploni says:

            How many American patriots with how many firearms and how much ammunition do you think live in that seven-state region?

            And in the eight bordering states?

            And motivated from elsewhere to travel to that region to protect the Republic?

            The Leftists and their La Raza sect are delusional.

            And we (still), thank G-d, have the Second Amendment.

            Liked by 2 people

    • sunnydaze says:

      TOTAL No Brainer.

      Liked by 1 person

    • Bud Klatsch says:

      Brains are in short supply in DC!

      Like

    • Bud Klatsch says:

      Too simple for DC to understand?

      Like

  2. MfM says:

    I’ve stood behind various people wiring money out of the US. There are so many store and bank fees an additional fee might be grumbled at, but it would be paid.

    Liked by 8 people

    • MfM says:

      There are other ways to send money, but people sending want it there immediately and safely. I’ve seen people literally on their phones while they were doing it and then waiting until it’s cleared on the other end. It’s sometimes only a minute or two.

      Liked by 9 people

    • zaq123 says:

      And with each grumble, another yard of concrete gets poured on the Southern Border.

      Liked by 20 people

    • thefrankproject says:

      Exactly. Very frustrating hearing idiots say that the President “lied” about who will ultimately pay for it, when the wall hasn’t even been built yet! In my view, getting Mexico to pay in one form or another will be – by far – the simplest component of the entire project!

      Liked by 7 people

  3. I like the idea. It allows PDJT to avoid the border wall funding fight with Congress.

    Liked by 14 people

  4. Hundreds and hundreds of millions of US dollars injected into their corrupt incompetent government, CASH, completely tax free, no strings attached. Man, how sweet is that.

    Cut back on it, keep some of that money here, and maybe the Mexican leadership will actually have to start fixing their own country when their people start to feel the squeeze and running to the US is no longer an option. A win-win.

    Liked by 8 people

  5. indiamaria2020 says:

    With President Trump’s Administration and entire TEAM now firmly established in the White House, let us remember the words of a wise, political Oracle — Alfred E. Neuman.

    “What, Me Worry?”

    Liked by 6 people

  6. cherrybark says:

    Bitcoin, Etherium, and many other crypto currencies step neatly around these fees and taxes. Just sayin.

    Liked by 2 people

    • Don’t know how many Mexican immigrants use bitcoin. I think it more likely they will stick cash in their socks when they go home to visit.

      Liked by 11 people

      • Paco Loco says:

        The remittances are made bi-weekly or monthly to keep the families back in Mexico alive!

        Liked by 5 people

        • Daniel says:

          It’s an unfortunate business model but merely keeping people alive isn’t enough. It’s good enough if you’re okay with poverty and captivity. We already know that’s not healthy — only only has to look at how well animals in the zoo and water parks fare. We also know that people fed on a steady diet of welfare almost never get out of it especially when that’s the only life they have ever known.

          What would these people be doing if this manner of living wasn’t available? Most of them wouldn’t have been born. The others would be fighting for better lives for themselves.

          Like

      • magagirl says:

        But they can’t go that easily, if they are not legally in the country. They risk not being able to come back.

        Liked by 4 people

        • Cuppa Covfefe says:

          If they’re not legally in the USA, they shouldn’t have been here in the first place.
          And they shouldn’t be here in perpetuity.

          They are not immigrants, the are ILLEGAL ALIENS. Look at Mexico’s policies about immigration. They’re tougher than we’ve been in a long time. Time to enforce our laws again.

          There are many LEGAL aliens over the years who had to jump through a TON of hoops to get legal residency (and eventually citizenship). Those who want the privilege of living and working in the USA must be willing (and able) to meet those conditions and jump through those hoops, too.

          Liked by 2 people

    • zaq123 says:

      Something tells me the people in Venezuela aren’t too concerned with Bitcoin, etc at this particular moment. And I doubt the average person here, going to Western Union, has the slightest idea of what any of that stuff is.

      Liked by 7 people

    • thefrankproject says:

      If the illegal workers are paid in cash they still have to take it somewhere to be processed.

      Liked by 1 person

    • jbrickley says:

      Crypto currencies have scaling issues and some serious security concerns. I think the concept is brilliant as the block chain is a public ledger of transactions while the mega banks and the Fed manipulate the dollar ever since the gold standard was removed. The value of a dollar really is only based on the reputation of the USA to pay its debt and not on reality. It’s digital cash using the Internet and open source but the privacy makes it highly attractive to criminals, well until they try to convert to real currency.

      Like

    • Ogre says:

      That may be…but I don’t think the number of illegals that are savy on cryptocurrencies is too terribly high. The number of “families back home” savy enough to have ewallets, or even have access to an ewallet, is likely much lower.

      Even here in America, most people don’t use cryto-currencies, even though moving to a sole crypto-currency usage would neatly side-step most of our taxes.

      Like

  7. zaq123 says:

    Put in that remittance fee and you won’t need the wall. It’ll still be nice to have, though, just the one in China. Get a few RINOs out of Congress in ’18, maybe anohter SCOTUS pick, or two, and get rid of the fantasy that is birthright citizenship.

    Start going after the visa over-stayers and their offspring and we just might get this ship on course. God willing.

    Liked by 8 people

    • trumptyear says:

      We need the WALL to protect our border patrol.

      Liked by 6 people

      • zaq123 says:

        I didn’t say, not build it. I’m just saying, IMHO, that if things keep going the way they seem to be going, they’ll start leaving and not coming back. I’d love to see a glorious wall on the border. In fact, I’d love to see it, about 3 miles south of the southern shore of the Rio Grande, with nothing but barren open space separating it from the river. No where to hide.

        Like

    • JoAnn Leichliter says:

      I believe I read somewhere, a few weeks ago, that going after visa overstayers was becoming a higher priority for ICE. That was recommended by the 9/11 Commission, for Pete’s sake.

      Like

  8. rashamon says:

    K.I.S.S. and MAGA!

    Liked by 3 people

  9. Liz says:

    I live in California and have a ACE pre-paid credit card for online purchases. I’ve had it for over 12 years. I had my personal information stolen and unlike now it took me four years to straighten out. Anyways normally when I load money on to the card there is a line of illegals out the door. I’m here to tell you illegals are finding a different way of sending money to Mexico. Since Trump was elected there is no line ever…Illegals are ten steps ahead they have attorney’s working round the clock telling them how to break our laws….

    Liked by 11 people

    • zaq123 says:

      Or maybe, they figure that being on a line to wire money to Mexico will make them easy pickings for ICE, so they don’t go their anymore. If they’re finding other ways, like mailing it back home, pretty soon the mexican mailmen are going to be the richest guys in town and no one will get anymore mail.

      If they’ve figured out a way to do it thru banks then, thanks to the post 9/11 banking laws, those transfers can be easily detected.

      Liked by 6 people

    • MfM says:

      There will always be ways around things. This is a start. They are already paying fees to Western Union and other agencies to send money… a little more won’t be noticed after a few months.

      Liked by 2 people

      • JoAnn Leichliter says:

        Right, MfM. Don’t let the perfect be the enemy of the good. That is the old Progressive ploy: if your system for… (fill in whatever) isn’t absolutely foolproof, then it is no good at all. That is the anti-wall argument: some people will still get in, so don’t build it. Of course that is the universal quash, since nothing humans do is ever perfect.

        Like

  10. M33 says:

    LOL

    Weighing?
    Is this like when the President was “assessing” the Paris Climate Accords?

    You know he already made up his mind and is just driving his opposition crazy!

    Good stuff.

    Liked by 7 people

  11. First Last says:

    Hell no!!! Remove all illegal aliens from the country NOW!!! This is another way of accepting their presence. DETECT, ARREST, REMOVE. WE can pay for the dammed wall!!

    Liked by 4 people

    • True, there should be no tolerance of illegal immigration, but there are millions of Mexicans legally here, those are the people who are targeted with this tax.

      Liked by 3 people

    • The illegal ones are not the only ones sending money out of the country. This needs to be thought though carefully to make it difficult for these people to get around these fees.

      Liked by 4 people

      • ibobland08 says:

        That thought has crossed my mind, but quite frankly it is a downside that I think we just have to live with.

        My concern is that eventually the amount of illegal aliens is going to drop (which is our goal) and thus the amount of revenue this tax will provide will drop. The irony behind this idea is that it depends on illegal immigration.

        Liked by 1 person

        • NJF says:

          To your last point: the fee has more than one purpose. It will generate revenue for the wall, but it also adds another “con” to the “should I go to (or stay in) the US illegally?

          Remove all incentives for coming or staying, and ultimately the cons outweigh the pros.

          And that IMO is the primary goal.

          Liked by 1 person

        • You are right iboblando it is the “downside”.

          We can not make everything sweet and lightness for all people here.

          The legal Mexicans will just have to put up with the remittance fee.

          Their countrymen have been having a good old time here in in the United States for about 30 years now.

          If you read the article you know that 27 BILLION DOLLARS was sent to Mexico last year.

          That is ONE YEAR.

          ONE YEAR!

          We have no idea how many illegals are here now.

          So if a a few legal Mexicans are going to be upset because they must pay a remittance fee to send money “home” to their families, you probably know just about what most hard working American citizens are going to say about their concerns.

          Yep.

          That is right, we are not going to bend over backwards to make any special conditions for them.

          They will just have to suck it up and pay the remittance.

          Like

          • piper567 says:

            Legal Mexicans, who I grew up with, will only increase their ire towards the illegals…and vote for Trump. Again.
            Legal Mexicans are the ones msm said would never vote for Trump.
            Oh, but they did.
            Part of the reason they did was his stand on illegals. They really do not like illegals.

            Liked by 1 person

      • JoAnn Leichliter says:

        Just tax all of these transactions. Kerp it simple.

        Like

    • Daniel says:

      And I’m pretty sure drug money is moved this way as well. Many are already self-deporting. Some are (and will be) here legally. These are all points for negotiation. See the larger picture. The president is setting the table for a smorgasbord of great options which are all wins for the USA.

      Liked by 1 person

    • Janie M. says:

      That would be ideal, First Last, but you know, in the real world, won’t be happening. Just learned a few days ago, our RINO governor, Rauner (IL) signed the Illinois Trust Act. We are NOW officially a sanctuary STATE! %#^%(%&#_)%^*%^&)!!!! So we will probably be getting an overflow of illegals from out of state cities allegedly terminating their sanctuary city statuses (due to loss of federal funding). Damn.

      Like

  12. mj_inOC says:

    Managed bank branches in LA, OC and VA and can confidently confirm sundance’s recommendation as an easily implemented and logical solution.

    Liked by 4 people

  13. Lunatic Fringe, Phd. [undocumented] says:

    How about make it the same as income tax rate?

    Liked by 6 people

  14. paulraven1 says:

    So what are we waiting for? Why are we “floating” and not doing.

    Liked by 1 person

  15. thefrankproject says:

    10% fee to make it revenue neutral, right?

    Liked by 4 people

  16. bullnuke says:

    As the wailing increases, so should the %. 4% in my opinion is too low. My taxes are higher than that.

    Liked by 10 people

  17. Donna in Oregon says:

    President Trump also does long game strategy. It’s funny how short-sighted the Cartels and Globalists have been in moving money around.

    Now it’s going to get interesting. If the money is from ill-gotten gains, who is going to fight it’s seizure? Every single electronic transaction can be traced. President Trump’s cabinet will have no trouble finding it and holding it.

    RICO.

    Liked by 1 person

  18. WSB says:

    Let’s make it mandatory for all foreigners, and why not round up…to 5%.

    Liked by 6 people

  19. The Boss says:

    I’d start a bit higher that 4%. Not so much higher that it would spawn a new money-laundering industry, or force Mexicans into the islamic “Hawala” cash movement network.

    Liked by 3 people

  20. EbonyRapror says:

    So many of these common sense solutions are like low hanging fruit waiting to be picked … c’mon, just reach up and pick it already.

    Liked by 3 people

  21. How long before a federal judge issues an injunction or a state like California files a lawsuit…or both.

    Liked by 3 people

    • Deb says:

      They will do this every time he does anything. Bring it.

      Liked by 1 person

    • Bob Thoms says:

      All the more reason to do it sooner rather than later.

      But I suspect this is somehow tied into NAFTA negotiations………..leverage baby!

      Like

    • I would expect that to happen very soon after remittance surcharges were to be officially proposed. (One would need to prove that it’s not a form of illegal seizure falsely labeled a “fee”, per concerns mentioned by others about not penalizing citizens or those here legitimately.) It’s a normal part of the process whenever governments try to invent new revenue streams.

      Each state already has established caps on fees for money transfers, which are not uniform. If this was to be a uniform federal surcharge it would require a new law from Congress. It couldn’t be done by Executive Order.

      Like

      • piper567 says:

        Invisible,
        if what you are saying is true, I trust Trump’s lawyers to get it, and incorporate whatever safeguards needed.
        Don’t think Trump, unlike his predecessor, will submit anything unconstitutional.

        Liked by 1 person

        • andyocoregon says:

          The 9th Circus Court will find a way to block it.

          Like

        • I trust PDJT’s lawyers to be good lawyers, piper, but what is or isn’t constitutional is ultimately determined by the federal courts, not by presidents or Congress. Every president oversteps or overreaches, and is restrained or rejected further along the process. They all win some fights and lose some.

          That’s how the ACA’s individual mandate was ruled a tax, something neither of the other two branches of government had interpreted it to be – which made the law constitutional. It is why I said fending off court challenges was a normal part of making law. The other two branches can fashion any sort of proposal or plan they like, but if it can’t withstand scrutiny within the body of legal precedent, it can’t stand at all.

          Like

  22. tonyE says:

    I’ve always thought it made a lot of sense.

    Hate to say this… but the IRS could easily handle this.

    Liked by 1 person

  23. iamanamerican says:

    I do not know why this is a big issue. If you go to your bank even today and wire transfer, the banks are charging at least $40 to $50 for every transfer. Increase the damn fees by $10 if you are not a Citizen of this country – does not matter whether the individual is on visa/ green card or an illegal and does not matter where the money is sent. If its being sent to South or North of the border (trust me the Justin of Canada will start a re-route bank and incur all the cost and might even give additional $), increase the fee by $15 per wire transfer or certain % more.
    We can build the wall 10 times in a year with this money. And those questioning the logic, just check your Telephone bill , you are paying tons of fees for free phones distributed by the previous admin.

    Liked by 2 people

  24. 4% if they can prove they paid tax on the money they’re sending. 35% if they can’t.

    Liked by 4 people

  25. Payday says:

    Hope he can do this without congress

    Like

  26. Deb says:

    Do it!

    Like

  27. GW says:

    Can trump do it through executive action without congress ?

    Like

  28. Birddog639 says:

    All in all it’s just another brick in the wall.

    Like

  29. Travis McGee says:

    Quit talking and do it. What’s there to weigh? :Libs and Rino’s will hate it and sane people will support it.

    Like

  30. Gov Jay says:

    Only 4%?…

    Like

  31. Fred says:

    Why not 10 or 20%? I could be paid for in a year. Sending money out of the country should be considered laundering it. If the cartels send money to Mexico, and it is confiscated, then anyone else should get the same treatment.

    Liked by 1 person

  32. MaineCoon says:

    This has always been my preferred method of paying for the wall. Instant cash. Then when the wall is fully paid, the monies can go towards border, LOE and prisons expenditures that illegal immigrants have caused USA taxpayers to pay due to their illegal entry and illegal activities.

    I think it should be 5-6%.

    Liked by 2 people

  33. Mia C says:

    The fact is, I want the wall even if we do have to pay for it. It’d pay for itself by all the social services and schooling we wouldn’t be paying. But I like Trump’s gumption and pro-America can-do spirit that the country causing the need for the damn thing should have to pay.

    Like

  34. CleanhouseinDC says:

    I think it should be a hire rate over time. In theory, there will be fewer illegals here wiring money home, so that $1B+ number will go down. Every 2 or 3 years they should increase by 1%. Make the pain on the illegals higher, and more will self deport.

    Liked by 1 person

  35. Landslide says:

    Such good news today—4 companies chosen to build concrete wall prototypes, possible ending of DACA policy, possible taxing of remittance fees, Bossert crushing it at the press conference, rednecks using their monster trucks for noble purposes, my governor declaring Sunday as a Day of Prayer for Texas, the Blaze laying off a bunch of people(just go on and shut the doors, please!), and my President donating $1,000,000 of his own money to the efforts in Texas. Whew! Good news is always welcome, but especially after the last week of tragic hurricane news. Can you see that big ol smile on my face?!

    Liked by 3 people

  36. Sandra-VA says:

    The bill is already written, and is one that I posted here as soon as it went up…

    Everyone should call/write/whatever to their congress critters to get them to support the bill!

    https://www.congress.gov/bill/115th-congress/house-bill/1813/text

    Like

  37. BL says:

    How about we pay for the wall and they take back their illegals including DACAs peacefully? In the end we still win.

    Liked by 1 person

    • nimrodman says:

      Two points:

      — No matter what, it’s time to collect a little reimbursement against all our expenses thus far that have been incurred by this illegal population

      — The battle to get Mex to take back their illegals including DACAs will not be a battle with Mexico but with the U.S. Congress

      Just sayin’

      Liked by 1 person

  38. TreeClimber says:

    I hope PDJT *does* get a check from Mexico to fund it, just to stick it to everyone who says he couldn’t! They won’t grasp the subtler nuances of withholding money from Mexico to pay for it.

    Like

  39. G. Combs says:

    The hidden problem is the Multiplier Effect. A dollar sent out of the country is a dollar that does not buy eggs from an American farmer who uses that dollar to buy grain for his chickens and the grain farmer who then uses that dollar to buy a new thresher…. ===> to the miner who mines the iron ore for the steel to build the factories and equipment.

    Why the ‘Local Multiplier Effect’ Always Counts

    [….] one million dollars recirculating eight times would act much like eight million dollars by increasing revenue and income opportunities for local producers.

    Now another scenario: picture that same amount of money being spent immediately at stores (or online) with businesses headquartered in other regions on imported goods. These transactions would add very little or no value to the local economy; one million dollars would act just like one million dollars instead of several million dollars.

    History and Impact

    Over the past 50 years, the expansion of national businesses into local domestic markets has diverted this vital monetary stream and redirected it to centralized corporate coffers. There it is spent on large capital expenditures, overseas goods and all too frequently inflated executive salaries. This interception of funds has depleted local towns and cities across our nation of an important source of funds: recirculated income.

    It has been estimated that about a century ago, thriving industrial communities had a LME in the high 20s or low 30s. Today it’s estimated to be in the single digits. This reduction in the number of rounds that monies make has had an extremely negative effect on our local economies. All areas of community life are affected by this deficit. This lost treasure of local economies was never measured, monitored, managed or even acknowledged.

    Besides the obvious poverty-related problems of unemployment, underemployment, homelessness, and lack of funds for social and public health needs, there is also the issue of creating an unhealthy reliance on a vast commercial network of imported goods[…]

    With his training President Trump is very very much aware of the parasitic effect of illegals and other foreigners leaching away out nation’s life blood by short circuiting this Multiplier Effect.

    Liked by 3 people

  40. steven says:

    said this from day 1, best way to do it and the easiest. Lot of that money is not taxed to begin with so slapping a tax on that is justifiable even without the wall.

    Like

  41. Ziiggii says:

    😂😂😂😂😂😂😂😂😳

    And Mexico said they wouldn’t pay for the wall…. how stupid can one be?!?

    Like

  42. treehouseron says:

    I worked at a grocery store in the 90’s, and ran the front desk and the Western Union machine. I don’t think most people understand how much money is sent back… back then there were way less illegals around but even then, they came in every week, same people, and sent at least 500 each home, weekly. I asked a couple of them about it while we did the paperwork, etc. and they said that basically they send the money home to their mother or wife, and after working here for 5 or 6 years go home and they live like Kings for the rest of their life. At the time the way they were housed here was 12 guys would all go together and rent 1 apartment, I also worked in the photo lab and they’d bring in rolls of film to get developed of them partying in their apartment, nothing for furniture but some old couches and matresses on the floor.

    This has been going on for at least 20 years that I’ve personally seen, probably much longer. It’s something that should have been dealt with long ago, think of all the jobs lost to this, think of all the American Cash heading out of the country, for all that time.

    Liked by 1 person

  43. Paul Killinger says:

    Of course, SD. This has been exactly the way to fund The Wall all along.

    Not to mention 4% is alot less than the usurious rates the remitters charge!

    Like

  44. Jmkny says:

    Boost up the percentage on the transfer and help offset all the money illegals cost us citizens- welfare payments they don’t deserve, education Benefits-all of it.

    Like

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