They give in and reduce the tax on remittances to 1%.

Republicans are hoping the tax will be passed before July 4th, at a much lower rate than the 5% the House of Representatives approved in May.

The controversial remittance tax pushed by Donald Trump was reduced to 1% in the latest draft of the mega-bill being discussed in the U.S. Senate, where it is expected to be passed before the July 4th celebrations.

The amount represents a considerable reduction from the 3.5% initially proposed by Republican congressmen, but stands in even sharper contrast to the 5% rate approved by the House of Representatives last month.

While it is unclear whether this version will have the necessary support to advance, the tax reduction suggests that the Republican majority is seeking to mitigate criticism, especially in our country, whose economy is propped up by the remittances that millions of workers in the United States send to their families in Mexico.

The new Senate Finance Committee brief details that, if approved, the tax would take effect after December 31, 2025, and would only apply to transfers made through cash, money orders, cashier's checks, or similar physical instruments.

It argues that the Republican initiative will avoid a tax increase of more than $4 trillion, which would represent a tax break for Americans.

The remittance tax that President Donald Trump is pushing through the U.S. Congress would be reduced to 1%, according to the reduced version of the mega-bill being discussed in the U.S. Senate.

In general, a tax equivalent to 1 percent of the amount of the transfer is imposed on any remittance transfer,” the document states.

The announced figure represents a considerable decrease considering that the initial proposal included in the bill known as the “big and beautiful” bill was 3.5 percent, while the Republican-majority House of Representatives approved last May was 5 percent.

This time, it is unclear whether the version will have the necessary support to move forward; however, it suggests that the majority is seeking to mitigate criticism, especially in Latin American countries like Mexico.

The new document details that the remittance tax, if approved, would take effect after December 31, 2025, and would only apply to remittances made through cash, money orders, cashier's checks, or similar physical instruments.

By José Díaz Briseño