US EditionCongressman Criticizes Tax on Remittances in the United States
- The US House of Representatives passed the One Big Beautiful Bill Act in 2025, including a 3.5% excise tax on remittances sent by non-US citizens and legal immigrants.
- This tax follows earlier proposals of a 5% rate and sparked concern because remittances are currently untaxed, with senders already paying income taxes on earnings.
- The tax targets remittances mainly from immigrant communities, such as the Indian diaspora, which sent over $33 billion to India in 2023–24, and imposes new reporting requirements on remittance providers.
- Experts warn that the tax could reduce remittance volumes, increase costs beyond the current 6.4% average transfer fees, push flows underground, and negatively impact US remittance firms and foreign economies.
- The tax could jeopardize key American strategic interests by weakening formal remittance pathways, reducing oversight of financial flows, and destabilizing countries that heavily rely on these money transfers.
13 Articles
13 Articles
The 3.5 percent tax that the United States plans to apply to remittances can affect “the well-being of a significant number of Mexican families,” warned BBVA Mexico’s economic studies area, the largest bank in the country.
The House of Representatives approved Trump's fiscal plan where he fixes a 3.5% tax on remittances; the bill now passes to the Senate
Netizens unhappy with remittance tax cut to 3.5%, ‘from 0 to 3.5% is never a relief’
The new tax will not affect US citizens or nationals who use qualified remittance providers. However, it will apply to legal immigrants — including Green Card holders and those on F1, H1B, and L1 visas — a significant portion of the Indian diaspora.
The intention to impose a tariff on the shipments of money (remittances) from our countrymen living in the United States to their relatives in Mexico is an act that violates the human rights and the economy of thousands of families in our country.That initiative of the president of the neighboring country, Donald Trump, which largely sustains the US economy thanks to the work of millions of Latino brothers, is the clearest sign that the voraciou…
Coverage Details
Bias Distribution
- 57% of the sources lean Right
To view factuality data please Upgrade to Premium
Ownership
To view ownership data please Upgrade to Vantage
