# Does anybody understand how Mexico will pay for the wall?

**URL:** <https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144>\
**Category:** In My Humble Opinion\
**Created:** [January 25, 2017, 2:59pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144 "2017-01-25T14:59:55Z")\
**Posts on this page:** 20\
**Page:** 6

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**Author:** ![Spoons](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/spoons/32/3141_2.png) [@Spoons](https://boards.straightdope.com/u/Spoons)\
**Post date:** [January 26, 2017, 8:29am UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/101 "2017-01-26T08:29:28Z")

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> [@rbroome](#):
>
> Do you want to send to Mexico? Great, there is a 5% sales tax on that, taken off the top. Where do you want to send the ?

Simple. To Canada, or the Bahamas, or to the Cayman Islands, or the UK, or France, or wherever. Whose agents then can easily wire the money to Mexico. Heck, I know a couple of Canadians who would be happy to facilitate money transfers to Mexico, and who would love to take a smaller commission than any percentage-tax the US might levy, in exchange for the business they’d get. Note that that is a commission to them, not the government of the United States.

The only way Trump can “make Mexico pay for the wall” is to tax all money leaving the United States. Somehow, I don’t think Americans would like that.

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**Author:** ![ataraxy22](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ataraxy22/32/307_2.png) [@ataraxy22](https://boards.straightdope.com/u/ataraxy22)\
**Post date:** [January 26, 2017, 9:29am UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/102 "2017-01-26T09:29:04Z")

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My guess is that the plan is to have people that crossed illegally either deleted or they can stay and build the wall by will be paid less than Americans would be paid. This of course would have terrible optics, but Trump is blind to everything.

Sent from my SM-G930V using Tapatalk

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**Author:** ![ataraxy22](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ataraxy22/32/307_2.png) [@ataraxy22](https://boards.straightdope.com/u/ataraxy22)\
**Post date:** [January 26, 2017, 9:30am UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/103 "2017-01-26T09:30:04Z")

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Deported not deleted!

Sent from my SM-G930V using Tapatalk

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**Author:** ![Darren\_Garrison](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/darren_garrison/32/92_2.png) [@Darren\_Garrison](https://boards.straightdope.com/u/Darren_Garrison)\
**Post date:** [January 26, 2017, 11:42am UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/104 "2017-01-26T11:42:17Z")

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> [@rbroome](#):
>
> The wall won’t be impenetrable, it won’t be continuous, the construction will take a long time, and the remittances won’t pay for the entire thing. But it will get built. And he will be bragging about it in 4 years.

That description reminded me of something, and it took me a minute to figure out what: the Easter Islanders building Moai. And the wall will represent the same thing–the last gasps of a dying civilization.

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**Author:** ![Krouget](https://avatars.discourse-cdn.com/v4/letter/k/b38774/32.png) [@Krouget](https://boards.straightdope.com/u/Krouget)\
**Post date:** [January 26, 2017, 1:06pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/105 "2017-01-26T13:06:23Z")

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> [@Chefguy](#):
>
> The news today is that Trump is going to sign an executive order to start building The Wall. It’s estimated that it will cost over $10 billion/mile. He is still insisting that Mexico will pay for it, but has yet to tell us how that will happen. Does anybody have a clue as to what his Super Secret Plan is to accomplish this?

From his most recent comments, apparently payment for the wall may come in the form of some complex language during negotiations with Mexico, which I guess he assumes, they’ll be too dumb to notice. They’ll pay for it without knowing it!

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**Author:** ![Lord\_Feldon](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/lord_feldon/32/341_2.png) [@Lord\_Feldon](https://boards.straightdope.com/u/Lord_Feldon)\
**Post date:** [January 26, 2017, 1:24pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/106 "2017-01-26T13:24:15Z")

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If taxing money sent to Mexico is to be counted as Mexico paying for the wall, will revenue Mexico raises in its own retaliatory measures be subtracted from the figure? It’s not like they never have a chance to tax Americans. There are maybe a million Americans who live in Mexico and a bunch more who visit. What happens if Mexico’s wall taxes generate more revenue than ours? Won’t that mean we, effectively, paid _even more_ for the wall?

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**Author:** ![levdrakon](https://avatars.discourse-cdn.com/v4/letter/l/49beb7/32.png) [@levdrakon](https://boards.straightdope.com/u/levdrakon)\
**Post date:** [January 26, 2017, 1:35pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/107 "2017-01-26T13:35:58Z")

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We’ll build a wall, and pay Mexico for it!

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**Author:** ![gopachok](https://avatars.discourse-cdn.com/v4/letter/g/43a26b/32.png) [@gopachok](https://boards.straightdope.com/u/gopachok)\
**Post date:** [January 26, 2017, 2:44pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/108 "2017-01-26T14:44:22Z")

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What’s the amount of money that can be put towards building the wall by de-funding all of the sanctuary cities?

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**Author:** ![CarnalK](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/carnalk/32/486_2.png) [@CarnalK](https://boards.straightdope.com/u/CarnalK)\
**Post date:** [January 26, 2017, 3:49pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/109 "2017-01-26T15:49:59Z")

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> [@gopachok](#):
>
> What’s the amount of money that can be put towards building the wall by de-funding all of the sanctuary cities?

That Trump can unilaterally defund without going through Congress? Probably very little. A [CNN article](http://www.cnn.com/2017/01/25/politics/sanctuary-cities-explained/) touches on the issue:

> [@](#):
>
> While the administration likely can’t cut off all federal funding, as much of it is disbursed through Congress, the President could put some pressure on cities this way.  
> Aside from congressionally provided funds, there are a number of grants administered by federal agencies that could mean big money lost to cities and states.
> 
> One such program is the Edward Byrne Memorial Justice Assistance Grant Program, administered by the Department of Justice, points out Hans von Spakovsky, a legal and immigration expert at the conservative Heritage Foundation who advocates for policies like those implemented by Trump.
> 
> That fund alone allocated $274.9 million in 2016, according to the Bureau of Justice Statistics, and the five states with the most allocations were California, at $30.5 million; Texas, at $21.4 million; Florida, with $17.8 million; New York, with $15.6 million; and Illinois, at $10.4 million.

So as the article says, it might put pressure on the cities but I doubt they’re coming anywhere near the $25 billion wall estimate.

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**Author:** ![slash2k](https://avatars.discourse-cdn.com/v4/letter/s/439d5e/32.png) [@slash2k](https://boards.straightdope.com/u/slash2k)\
**Post date:** [January 26, 2017, 4:15pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/110 "2017-01-26T16:15:07Z")

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> [@CarnalK](#):
>
> That Trump can unilaterally defund without going through Congress? Probably very little. A [CNN article](http://www.cnn.com/2017/01/25/politics/sanctuary-cities-explained/) touches on the issue:
> 
> So as the article says, it might put pressure on the cities but I doubt they’re coming anywhere near the $25 billion wall estimate.

A good chunk of the money Trump can unilaterally defund would also be counterproductive to defund.

> [@](#):
>
> The two most likely federal agencies that could cut off funding are Justice and Homeland Security. They provide grants for local law enforcement agencies to hire officers; bolster prosecutions, courts and jails; provide drug treatment, prepare for terrorist attacks, and assist crime victims and witnesses. –[USA Today](http://www.usatoday.com/story/news/world/2017/01/25/donald-trump-sanctuary-cities-immigration/97043106/)

The optics of cutting off counterterrorism money and then having a terrorist attack on that city would be pretty bad. Cutting funding for police officers and prosecutors would be about as bad.

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**Author:** ![ftg](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/ftg/32/2801_2.png) [@ftg](https://boards.straightdope.com/u/ftg)\
**Post date:** [January 26, 2017, 5:53pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/111 "2017-01-26T17:53:19Z")

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> [@Whack-a-Mole](#):
>
> Maybe it is all theater and will not happen but he’s making a show of it:

The difference between “theater” and “show” is?

Regarding taxing money transfers. You can’t single out Mexico. It won’t work. The money will just leave the US via another country.

If you tax _all_ transfers out of the US, then there is going to be an enormous number of consequences. Why should people sending money to Germany have to pay for Trump’s linear pyramid?

There’s an immense amount of stupidity regarding “Mexico will pay for it.”

Just forget it. Forget … it.

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**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\
**Post date:** [January 26, 2017, 6:13pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/112 "2017-01-26T18:13:42Z")

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> [@ataraxy22](#):
>
> I imagine that if Trump tried to put a levy on remittances to Mexico, Mexico would counterbalance that with a remittance on funds leaving Mexico for the U.S. The dollar amount might not be as great, but it would be on companies and the rate could be higher.

Sure, but remember, the levy is supposed to be on cash transfers, thru Wire service, like WU.

The amount of those coming to the USA from Mexico is laughably small.

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**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\
**Post date:** [January 26, 2017, 6:17pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/113 "2017-01-26T18:17:11Z")

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> [@slash2k](#):
>
> The point is the remittances WON’T pay for the wall. They can’t–the math just doesn’t work.
> 
> Assume for the moment that the costs of the wall don’t go up, the amount of remittances don’t go down, none of the remittances are driven underground, and the levy is 5%, all of which is available for the wall. $24 billion in remittances per year \* 5% = $1.2 billion. That means that it will take at least twenty years of levies to pay for the wall, by which time the wall will already have needed repairs and replacements and maintenance, which aren’t free.
> 
> Now realize that most of those assumptions don’t hold water. The costs of government projects almost always go up, usually by quite a lot. (See Boston’s Big Dig for an extreme example, but plenty of highway projects, etc., go way over budget, and military cost estimates are rightfully notorious.)
> 
> Meanwhile, remittances aren’t a stable number–they wax and wane in line with overall economic conditions, the number of immigrants here, etc. If Trump succeeds in deporting most illegal aliens, for example, who’s going to be left to send money home?

Yes, altho the levy will start the cash flow for the wall, the idea of a huge wall is ridiculous. Mind you, some improvements on it to stop the flow of drugs is likely a good idea.

But Trump _can_ **start** his wall. He _will_ be able to\* say\* “Mexico is paying for it”.

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**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\
**Post date:** [January 26, 2017, 6:31pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/114 "2017-01-26T18:31:29Z")

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> [@ftg](#):
>
> Regarding taxing money transfers. You can’t single out Mexico. It won’t work. The money will just leave the US via another country.
> 
> If you tax _all_ transfers out of the US, then there is going to be an enormous number of consequences. Why should people sending money to Germany have to pay for Trump’s linear pyramid?
> 
> There’s an immense amount of stupidity regarding “Mexico will pay for it.”
> 
> Just forget it. Forget … it.

So, a minimum wage illegal is gonna launder his $500 by sending it to India, then to Mexico??:dubious:

Cash remittances. Actually a small fee on those will cut back on fraud and money laundering.

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**Author:** ![CarnalK](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/carnalk/32/486_2.png) [@CarnalK](https://boards.straightdope.com/u/CarnalK)\
**Post date:** [January 26, 2017, 6:36pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/115 "2017-01-26T18:36:41Z")

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> [@DrDeth](#):
>
> Sure, but remember, the levy is supposed to be on cash transfers, thru Wire service, like WU.
> 
> The amount of those coming to the USA from Mexico is laughably small.

There is no reason Mexico would be required to exactly mirror whatever legislation was passed in the U.S.

But at the end of the day, Mexico is not a completely functionless country that depends on remittances even though it is important to some poor sections of the population. It’s got a GDP of $1.3 trillion. Even a 5% tax on remittances wouldn’t necessarily be worth going full trade war.

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**Author:** ![DrDeth](https://avatars.discourse-cdn.com/v4/letter/d/b487fb/32.png) [@DrDeth](https://boards.straightdope.com/u/DrDeth)\
**Post date:** [January 26, 2017, 6:40pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/116 "2017-01-26T18:40:42Z")

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> [@CarnalK](#):
>
> There is no reason Mexico would be required to exactly mirror whatever legislation was passed in the U.S.
> 
> But at the end of the day, Mexico is not a completely functionless country that depends on remittances even though it is important to some poor sections of the population. It’s got a GDP of $1.3 trillion. Even a 5% tax on remittances wouldn’t necessarily be worth going full trade war.

Mexico would lose a Trade war faster than a real war.

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**Author:** ![Rick\_Kitchen](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/rick_kitchen/32/522_2.png) [@Rick\_Kitchen](https://boards.straightdope.com/u/Rick_Kitchen)\
**Post date:** [January 26, 2017, 6:42pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/117 "2017-01-26T18:42:16Z")

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In California, at least, don’t there have to be environmental impact statements done, or is the federal government above all that?

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**Author:** ![Rick\_Kitchen](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/rick_kitchen/32/522_2.png) [@Rick\_Kitchen](https://boards.straightdope.com/u/Rick_Kitchen)\
**Post date:** [January 26, 2017, 6:44pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/118 "2017-01-26T18:44:43Z")

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I was reading this morning that the large majority of immigrants coming into the US are coming from Central America, not Mexico.

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**Author:** ![CarnalK](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/carnalk/32/486_2.png) [@CarnalK](https://boards.straightdope.com/u/CarnalK)\
**Post date:** [January 26, 2017, 6:57pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/119 "2017-01-26T18:57:49Z")

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> [@Rick\_Kitchen](#):
>
> I was reading this morning that the large majority of immigrants coming into the US are coming from Central America, not Mexico.

But a large number of them come through Mexico. The recently cancelled “wet foot/dry foot” policy wasn’t exactly a beloved policy for the Mexican government because it encouraged Cubans to illegally enter Mexico to get to the states, for example.

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**Author:** ![slash2k](https://avatars.discourse-cdn.com/v4/letter/s/439d5e/32.png) [@slash2k](https://boards.straightdope.com/u/slash2k)\
**Post date:** [January 26, 2017, 7:23pm UTC](https://boards.straightdope.com/t/does-anybody-understand-how-mexico-will-pay-for-the-wall/778144/120 "2017-01-26T19:23:32Z")

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> [@DrDeth](#):
>
> So, a minimum wage illegal is gonna launder his $500 by sending it to India, then to Mexico??:dubious:

Carlos goes to the local Envio Dinero establishment, pays them their fee, and tells them he wants to send $300 to Miguel in Guanajuato. Does Carlos know or care of the local money broker sends it by way of Gujarat?

(As noted above, there are 30,000 registered money transfer businesses and plenty that aren’t. Monitoring, investigating, and shutting down all the ones that evade regulations costs money and time.)

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