US EditionTaxing Remittances 'Could Lead to More Migration'
- On May 22, the U.S. House of Representatives approved a tax measure that will impose a 3.5% levy on money transfers made by non-citizens beginning January 1, 2026.
- The bill, initially proposing a 5% rate, aims to raise $22 billion by 2034 but faces criticism due to its impact on migrants and informal transfer channels.
- Remittances to emerging economies, especially Africa and Latin America, represent a crucial income source, often surpassing aid, with $92 billion sent to Africa in 2024, including at least $12 billion from the U.S.
- Experts warn the tax will squeeze low-income migrants and increase use of unofficial channels, reducing collected revenue and harming families dependent on remittances.
- If enacted, the tax may limit migrant consumption growth and foster informal transfers, but its effects will vary by community and state, with significant impacts expected in Mexico and parts of Africa.
37 Articles
37 Articles
Law change would shine light on 'scam'-like foreign transfer fees
Arena Williams, MP for Manurewa, says cash transfer services’ lack of transparency disproportionately impacts the elderly and those transferring money to family abroad The post Law change would shine light on ‘scam’-like foreign transfer fees appeared first on Newsroom.
Trump’s remittance tax sours Indian view of US dream
President Donald Trump's "One Big Beautiful Bill" includes a 3.5 per cent excise tax on remittances sent abroad by non-US citizens. India, the world's largest recipient of overseas remittances, received approximately $129 billion in 2024, with 28 per cent originating from the US
Taxing remittances 'could lead to more migration'
EL PASO, Texas (Border Report) – The president of Mexico is urging U.S. lawmakers to exempt her country from a controversial tax on international money transfers the House approved last week. The 3.5 percent remittance tax on funds sent abroad by individuals who are not U.S. citizens is included in the One Big Beautiful Bill Act the lower chamber of Congress passed on Thursday. Mexico opposes proposed US tax on remittances Mexican citizens…
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