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Senate version “One big and beautiful bill” Experts say it includes a small 1% tax on international cash transfers, known as remittance tax, which has a major impact on immigrants working in the United States.
Remittances are remittances to other countries outside the United States, a common practice among migrant workers who send a portion of their wages back to their families in their home countries. Tens of thousands of dollars of remittances are sent from the US to other countries each year.
Previous versions of the bill include higher tax rates, particularly targeting Illegal immigration However, the current version of “large and beautiful invoices” remitted outside the US charges a 1% fee only for cash transfers, not electronic transfers sent to other countries. US citizens who want to send cash to other countries are also subject to a 1% tax.
Estimates made by the Federal Government are expected to generate $10 billion in additional revenue. Politics.
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As the House discusses the big and beautiful bill, experts say taxable remittances sent to other countries could have a major impact on immigration to the US. (Eric Lee/Bloomberg via Getty Images and Getty)
In addition to generating additional revenue, Lora Ries, director of the Border Security and Miviriment Center at the Heritage Foundation, told Fox News Digital that remittance tax could block illegality Immigrants To the US by making it difficult to send money home.
“Illegal aliens generally want five things when they come to the US: getting in, staying here, working, going home (transferring money), taking family and/or having kids here,” she explained. “Preventing these five things will prevent illegal immigration and encourage self-report.”
The administration has been pushing illegal immigrants into self-swathing, Incentivize them By providing the cost of commercial flights ahead and providing a $1,000 salary to those who choose to self-abolize. Lease said remittance tax could be another effective strategy besides ice attacks that could help crack down on illegal immigration into the country and help reduce the number of illegal immigrants in the United States.
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DHS conducted its first project homecoming flight to bring in 64 illegal immigrants who chose to return to their country in May. (Ministry of Homeland Security)
However, he said leasing needs to be much higher at 1% to be effective.
“There’s very little 1% tax on cash transfers alone. The tax is much higher and you need to cover all kinds of remittances,” she said.
“To date, the US government has not touched the hundreds of millions of dollars a year of going out of the country without benefiting the US economy,” she continued. “Remittances should be taxed to block unauthorized employment and its revenue.”
The five family members who claim to be from Guatemala and those who claim to be wearing pink shirts from Peru will walk through the desert after crossing the border wall of the Tucson sector on the US-Mexican border on Tuesday, August 29, 2023, at Organ Pipe Cactus National Monument near Lukeville, Arizona. (Matt York/AP photo)
Meanwhile, Ariel Lewis Soto, a senior policy analyst at the Institute for Immigration Policy, told Fox News Digital that he believes remittance taxes will have a major impact, but that may not be the case. Trump administration Hope.
He claimed to block remittances to countries such as El Salvador, Guatemala, Honduras – such payments account for more than 20% of GDP – could in fact encourage migration from those countries.
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“In Honduras, in El Salvador and Guatemala, even a 1% tax if you reduce remittances, can actually be a serious casualty of the development of those countries,” he said. “If the ruins are actually going to be significantly reduced, it could backfire President Trump’s agenda to reduce irregular migration, as it could actually make the situation, the economic situation of these countries more difficult and promote new irregular migration in the future.”
The House of Representatives is currently considering a version of the Senate’s “big and beautiful bill.”
