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The Senate’s version of the “one big, beautiful bill” includes a tiny, 1% tax on international cash transfers — called a remittance tax — which, according to experts, will have a major impact on immigrants working in the U.S.
A remittance is a money transfer to another country outside the U.S., which is a common practice among immigrant workers who send part of their wages back to family in their native countries. Tens of billions of dollars in remittances are sent to other countries from the U.S. every year.
Earlier versions of the bill included higher tax rates and specifically targeted illegal immigrants sending money outside the U.S. The current version of the “big, beautiful bill,” however, imposes a 1% fee only on cash transfers, not electronic transfers, sent to other countries. U.S. citizens who want to send cash to other countries will also be subject to the 1% tax.
The tax is expected to generate $10 billion in extra revenue for the federal government, according to an estimate done by Politico.
TRUMP’S ‘BIG, BEAUTIFUL BILL’ CLEARS FINAL HURDLE BEFORE HOUSE-WIDE VOTE
As the House of Representatives debates the ‘big, beautiful bill, experts say a provision taxing remittances sent to other countries could have a major impact on immigration into the U.S. (Eric Lee/Bloomberg via Getty Images and Getty)
Besides generating extra revenue, Lora Ries, director of the Border Security and Immigration Center at The Heritage Foundation, told Fox News Digital that the remittance tax has the potential to discourage illegal immigration into the U.S. by making it harder to send money back home.
“Illegal aliens generally want five things when coming to the U.S.: to enter, to remain here, work, send money home (remittances), and bring family and/or have children here,” she explained. “Prevent those five things, and you prevent illegal immigration and encourage self-deportation.”
The administration has been pushing hard for…
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