Source: Responsible Statecraft
by Karthik Sankaran
“Among the elements of the budget bill working its way through the U.S. Congress is a proposal for a 3.5% tax on all retail money transfers made by all non-citizens residing in the United States (including those with legal status) to other countries. Otherwise known as remittences, these are transfers typically made by immigrants working in the U.S. to help support family back home. The revenue impact of the bill is expected to be relatively small …. the remittance tax would bridge less than 0.16% of the deficit. While the direct fiscal impact of the tax on the United States might be small, the consequences would be much greater outside the country, with a particular impact on many of America’s neighbors.” (06/25/25)