By: Brian Evans
On Sunday, Breitbart News released an exclusive interview with the former Kansas Secretary of State Kris Kobach. In the interview, Kobach revealed a way that President Trump could…
“stop mass illegal immigration and asylum fraud, as well as boost the American economy, by unilaterally ending all remittances to Mexico.”
In the Breitbart News Tonight interview, Kobach said Trump should…
replace his prolonged threat to Mexico — where he said he will wait a year before he puts pressure on the country — with an executive regulation that threatens to end all remittances by illegal aliens in the U.S. back to Mexico.
“The threat I propose is one that actually helps us if we follow through on it. That is the threat of ending remittances from the majority of people in the United States from Mexico who are here illegally. That is a threat that we could carry through on that actually helps our economy because the money is not sent home, it stays in circulation in the U.S. economy and helps rev up our economy. It’s actually a good thing if we follow through. [Emphasis added] There will always be ways to circumvent things you put in place. Yes, if we stop wire transfers and bank transfers, there may be ways to get around it and one way to get around it is to send cash in the mail. But, it will still significantly reduce the amount of money flowing into Mexico if we exercise that threat. And frankly, we may never even have to find out because I believe if you pass the initial regulation and you tell Mexico ‘Look, we’re going to finalize this thing unless you give us a safe third country agreement,’ I think they’re going to give us the agreement. They don’t want to risk losing that massive flow of foreign capital. In most years, it’s their second biggest source of foreign capital.”
The ‘Remittances’ that Kobach was talking about involve money that legal and illegal immigrants who currently live and reside within the United States earn and then send back to their respective home countries! According to the World Bank report, United States remittances to Mexico reached nearly $34 billion in 2018.
Pew Research reported that remittance money flowing out of the United States to nations around the world in 2017 topped almost $149 Trillion, which topped 2016 by 7%, and is expected to have soared in 2018!
Ultimately, it is difficult to track all remittances, due to illegals trying to hide their existence in the United States so those numbers could be much higher! After all, it’s impossible to know exactly how much money illegal immigrants remit annually because we don’t know how many illegal immigrants actually reside in America, the process is very ambiguous, and we all know that a black market exists, and they certainly are not going to be forthcoming on numbers!
Regardless, the total known outgoing remittances from the United States to other nations include… (TOP 13)
American Greatness revealed that not only is the redistribution of a nations wealth bad, but elimination is worse. They reported…
Therein lies one of illegal immigration’s biggest, yet routinely ignored, problems: illegal aliens hop the border, work (often without paying taxes), and send a large chunk of their earnings back home via remittances. Basically, remittances are a hidden tax Americans pay for the privilege of hiring artificially cheap illegal labor—and it adds up. In fact, illegal immigrants may remit around $30 billion annually.
Therefore, American Greatness pointed out that according to Pew Research’s 2018 remittance outflow data…
America lost $138.2 billion in remittances in 2016. And given that there are some 40 million first-generation immigrants, and (at least) 11.1 million illegal aliens, this means that there are roughly 51.1 million people sending remittances abroad.
Of course, the number of aliens is debatable: a recent study from Yale University found that there were at least 22.8 million illegals residing in America. That being said, let’s go with the low number for the sake of argument.
Dividing the total remittance outflows by immigrant proportions reveals that illegal aliens likely remit some $30 billion per year. That’s a lot of money. For context, it’s as much as the entire annual GDP of Vermont. And of course, the figure would be higher if we used Yale’s population estimates.
But it’s not just about the money—it’s what’s happening to it. Every dollar remitted by illegal aliens is a dollar ejected from the local economy, never to recirculate or be reinvested—it goes directly to Russia, or more likely Mexico, China, and Guatemala. This reduces the velocity of money and causes liquidity problems, particularly in small towns.
Functionally, there’s little difference between remittances and federal taxes: taxes skimmed from small towns pools in Washington D.C., while remittances sent by aliens line Carlos Slim’s pockets. It’s that simple. And yet allegedly anti-tax organizations like the Cato Institute routinely argue in favor of open borders, not seeming to grasp the necessary implications.
Therefore, they point out that Americans really should stop calling remittances…remittances, and call it for what it truly is…A TAX!
The chart below also details the surge in wealth that is funneled out of the American economy, and into the Mexican, Central American, and South Amerian economy yearly!
Breitbart News pointed out that…
The threat to end remittances, Kobach detailed, can be used to force Mexico into an agreement with the U.S. that bans Central American nationals from passing through Mexico to get to the U.S. to claim asylum despite Mexico having a robust asylum system. The policy, Kobach said, would ensure that Central Americans claim asylum in the first eligible country they travel to.
Kobach said that though illegal aliens from Mexico in the U.S. may turn to using forms of cryptocurrency to send money back home, the ending of remittances would still likely stop the current trend of soaring illegal immigration while also significantly putting pressure on the Mexican economy.
Ultimately, $20 Billion was sent out of the United States to Central American nations alone in 2018, which is up 25% or $4 Billion from 2016! As a result, slashing these remittances (taxes) would go a long distance in persuading these nations to curb the migration from and through their nations, and ultimately into the United States! In addition, the additional cash locked into the United States would flush the American economy with $Billions, and as Kobach asserts in his interview, it would become a major boost to the US economy! In other words, it would become a win-win for America, and a major incentive for Central American nations, especially Mexico to step up their action on illegal immigration!