Remittances from Mexican workers abroad broke a record last year, reaching US $26.97 billion, the Bank of México reported today.
A 5% “security” tax on remittances, to support BOTH vetting to ensure drug money isn’t being sent, would add 1.3 billion a year to fund the wall.
It’s important to always say “security fee” not tax and not immigration or Mexico. Make it across the board.
To make this work, you have to crack down on the Moslem money exchange networks which would be the goto solution for Mexicans to avoid the fee. Five percent is not that much however, and any public store front which advertises Halal money transfer would be quickly shut down. Make them hard to find.
The drug lords also need a way to get money back from America for the drugs that go forward. And trust me they aren’t CARRYING sacks of money across the border to Mehico. No! They use our remittance networks.
So what about tariffs? Yes we should have tariffs, but let’s keep those as their own issue and not entangle them with the wall.
First, we should have a 10% security fee to fund scanning equipment and pay for inspectors. It should be flat rate and for ALL NATIONS IMPORTS except for Great Britain (as a sign of our deep friendship. Ps they owe us a new whitehouse).
Next, there should be a tariff of 10% for nations that do not follow 1st world environmental practices. Half that tax should go to clean power in America. Who could object?
Next, there should be a tariff on countries that do not support intellectual property rights of 10%. Can you say China? Again, who can argue?
Finally, a worker abuse tax of 20% would be a very important one to stop sweat shops from being profitable and to stop US companies from using them.
So what does that mean for China? Well 10% + 10% + 10% + 20% = 50% tariff. Would that cause inflation and hurt America? For a while, until local production of the same products come on line. It’s a short term hurt and that’s the message Trump has to give.
All of these tariffs should go to pay down our debt. And we must follow a 3% budget reduction policy per year. Every year. Until we hit a balanced budget and can make a payment against the debt. Tax income will go up, our outflows will go down by law, and in a few years we will hit balanced budgets and soon after. At the 10 year points we have to look at it and see how we did. For this to work, it is important that pay as you go programs like Medicare and Social Security are isolated into their own separate budget and they must be funded fully each year by the rate of tax applied on income.
Next, our handout programs need to be estimated each year and that money reserved. What is left is all we have to spend on the budget.
Our budget process should divide our spending into the 20-30 departments and should be percentage based. They should not budget based on dollars. Then the GAO will tell each department what their budget is based on revenue and their percentage and they will have to submit a detailed budget to congress for approval – no more department of defense losing 2.6 trillion.
Our congressional budget process should work this way. The president will submit his initial budget of PERCENTAGES for each department. Then each congressperson will be able to switch 1% of allocation between departments. They should go through this, alternating democrat and republican, and then repeat the process a second time. That is the budget process. Impossible to overspend. And each budget has a payment against the debt. Our new tariffs should bring in 500 billion a year and to pay down our “true” debt over 20 years would take another 300 billion out of the general budget.