Republicans Seek to Crack Down on Migrants Sending Money Overseas
Summary
Republican lawmakers, led by Representative Chip Roy, introduced a bill to impose a 25% tax on money sent overseas by non-citizen migrants working in the U.S. The proposal aims to reduce the flow of U.S. funds leaving the country through remittances and follows earlier smaller remittance taxes signed into law under President Donald Trump.Key Facts
- The REMITTANCE Act would tax 25% of money sent abroad by non-citizens living in the U.S.
- Remittances are money migrants send to family or friends in their home countries.
- The U.S. sent about $103.2 billion in remittances in 2024.
- Earlier laws set smaller taxes on remittances, starting at 5%, then reduced to 3.5%, and now 1% on some cash transfers.
- The bill is supported by some hardline anti-immigration groups, including the Immigration Accountability Project and FAIR.
- Critics warn a high remittance tax might encourage more migration, as migrants try to earn more to cover the tax.
- President Trump recently signed an order for banks to increase checks on immigration-related financial activities to fight fraud and security risks.
- The executive order focuses on identifying illegal cross-border money transfers and requires banks to improve customer checks.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.