Connect with us

International

U.S. proposal to tax remittances sparks controversy across Latin America

A proposal from the United States is currently causing a stir throughout Latin America: imposing a tax on remittances sent by migrants to their home countries. The idea of a 5% tax on money transfers comes from the Republicans, the ruling party of U.S. President Donald Trump.

Mexico’s president chose a very symbolic setting to criticize the U.S. proposal, visually emphasizing the sociopolitical aspect of her words. At the inauguration of a hospital in Los Cabos, Claudia Sheinbaum said: “You cannot tax twice those who are already paying taxes.”

Remittances near $160 billion

The annual report from the Migration Department of the Inter-American Development Bank states that in 2024, the total volume of remittances from the U.S. to Latin American and Caribbean countries is around $160.9 billion, an increase of $7.7 billion compared to the previous year. The largest recipients are Mexico ($64.7 billion) and Guatemala ($21.5 billion). This means that in Mexico alone, about $177 million enters daily.

“If we compare remittance income relative to the GDP of countries in the region, in 2024 they represented about 20% of GDP in Guatemala, 27% in Nicaragua, 26% in Honduras, 24% in El Salvador, 20% in Haiti, and 19% in Jamaica,” explained Jesús Alejandro Cervantes González of the Center for Latin American Monetary Studies (CEMLA) in Mexico City, an organization that focuses specifically on the economic importance of remittances.

Advertisement
20250701_vacunacion-influenza-728x90
20250701_vacunacion_vph-728x90
20250701_dengue_728x90
20250501_mh_noexigencia_dui_728x90
20231124_etesal_728x90_1
20230601_agenda_primera_infancia_728X90
domfuturo_netview-728x90
20240604_dom_728x90
CEL
previous arrow
next arrow

The economic and sociopolitical relevance of remittances for recipient countries is enormous: “Remittances ease the budget constraints of millions of recipient households and reduce their poverty levels. They allow for a higher standard of living and help finance expenses in consumer goods, education, health, housing, and in some cases, investments in family businesses,” said Cervantes González. According to CEMLA studies, in Mexico there are 4.5 million households and 9.8 million adults who receive remittances, especially benefiting the poorest rural areas.

Continue Reading
Advertisement
20250701_vacunacion-influenza-300x250
20250701_vacunacion_vph-300x250
20250701_dengue_300x250_01
20250701_dengue_300x250_02
20250501_mh_noexigencia_dui_300x250
20231124_etesal_300x250_1
20230601_agenda_primera_infancia_300X250
MARN1

International

U.S. sanctions cuban president Díaz-Canel over regime crackdown on protesters

Proposal to ratify Miguel Diaz-Canel as president of Cuba

The United States announced on Friday, for the first time, sanctions against Cuban President Miguel Díaz-Canel, citing his role in the regime’s crackdown on the Cuban people as the country marks four years since the historic anti-government protests of July 2021.

The U.S. State Department imposed visa restrictions on Díaz-Canel and other key figures in the Cuban government, including Defense Minister Álvaro López Miera and Interior Minister Lázaro Alberto Álvarez Casas, according to Senator Marco Rubio, who shared the update on social media platform X.

“The United States is capable of imposing migration sanctions on revolutionary leaders and maintaining a prolonged and ruthless economic war against Cuba, but it will not break the will of our people or its leaders,” responded Cuban Foreign Minister Bruno Rodríguez.

In addition, the State Department added “Torre K”, a newly inaugurated 42-story hotel in central Havana, to its list of restricted entities in an effort to prevent U.S. dollars from funding repression by the Cuban regime.

The hotel has sparked criticism for representing a massive state investment in luxury infrastructure despite Cuba’s declining tourism sector and worsening shortages of food, medicine, water, and electricity.

Advertisement
20250701_vacunacion-influenza-728x90
20250701_vacunacion_vph-728x90
20250701_dengue_728x90
20250501_mh_noexigencia_dui_728x90
20231124_etesal_728x90_1
20230601_agenda_primera_infancia_728X90
domfuturo_netview-728x90
20240604_dom_728x90
CEL
previous arrow
next arrow

“While the Cuban people suffer from shortages of food, water, medicine, and electricity, the regime squanders money,” wrote Rubio.

In another post, Rubio also accused the Cuban government of torturing dissident José Daniel Ferrer and demanded immediate proof of life.

Ferrer, leader of the Patriotic Union of Cuba (Unpacu), was among the 553 prisoners released in January as part of an agreement between Cuba and the Vatican, following a decision by former U.S. President Joe Biden to temporarily remove Cuba from the State Sponsors of Terrorism list.

However, Ferrer’s conditional release was revoked in late April, prompting strong protests from Washington. The island has since been returned to the terrorism list after Republican President Donald Trump’s return to power in January.

Advertisement
20250701_vacunacion-influenza-728x90
20250701_vacunacion_vph-728x90
20250701_dengue_728x90
20250501_mh_noexigencia_dui_728x90
20231124_etesal_728x90_1
20230601_agenda_primera_infancia_728X90
domfuturo_netview-728x90
20240604_dom_728x90
CEL
previous arrow
next arrow
Continue Reading

International

Two missing after torrential rains cause flooding in Catalonia

Two people are missing in Catalonia, northeastern Spain, after torrential rains hit the region on Saturday night, causing flooding and disrupting rail traffic for several hours.

“We are working on the search for two people in Cubelles,” announced the Catalan Fire Department in a message posted on social media platform X. Cubelles is a town of about 17,000 residents located 50 kilometers from Barcelona.

Emergency crews remain active in the affected area, where the heavy rains overwhelmed local infrastructure and forced temporary closures of several transport routes.

Continue Reading

International

Trump administration begins downsizing ‘bloated’ state department workforce

The U.S. Department of State issued layoff notices on Friday to more than 1,300 employees both domestically and abroad, marking the start of a workforce reduction aimed at trimming what officials have called a “bloated” staff. The move is part of President Donald Trump’s broader effort to restructure the federal government.

According to local media reports, more than 1,100 Civil Service employees and around 250 Foreign Service officers received notifications via email. Those affected will be placed on administrative leave for periods ranging from 90 to 120 days from the date of their dismissal notice.

The job cuts are part of a plan to centralize and streamline the agency’s operations without disrupting its overall functioning. The restructuring was designed by Secretary of State Marco Rubio, who had previously informed Congress in May of his intention to reduce the department’s workforce by 15%. The State Department currently employs about 18,000 people.

According to the top U.S. diplomat, the goal is to optimize what he described as a “bloated bureaucracy that stifles innovation and misallocates scarce resources,” as well as to eliminate remnants of “radical political ideology.”

The reorganization is expected to hit hardest in offices focused on human rights and refugee issues, which will now be handled by regional bureaus, according to The New York Times.

Advertisement
20250701_vacunacion-influenza-728x90
20250701_vacunacion_vph-728x90
20250701_dengue_728x90
20250501_mh_noexigencia_dui_728x90
20231124_etesal_728x90_1
20230601_agenda_primera_infancia_728X90
domfuturo_netview-728x90
20240604_dom_728x90
CEL
previous arrow
next arrow

“We inherited a system that needed reform, and we are delivering it,” said State Department spokesperson Tammy Bruce on Thursday, adding that the Administration is committed to a foreign policy that puts U.S. interests first.

Continue Reading

Trending

Central News