Remittance tax in ‘one big, beautiful bill’ to have major impact on immigration

The version of the Senate of the Senate of the “One Big, Beautiful Bill” includes a small, 1% tax on international cash transfer – which is called remittance – which according to experts, will have a major impact on immigrants working in the US.

An remittance is a money transfer in another country outside the US, a common practice among immigrant workers who send back the family back to their original countries. Every year tens of billions of dollars are sent to other countries of America.

The first versions of the bill included high tax rates and specifically targeted illegal immigrants were sent to the current version of the “Big, Beautiful Bill” sending funds outside the US, however, only impose 1% fee on cash transfer, not electronic transfer, sent to other countries. American citizens who want to send cash to other countries will also be subject to 1% tax.

According to tax estimates, tax is expected to generate $ 10 billion in additional revenue for the federal government. Politician,

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In addition to generating additional revenue, Lura Rees, director of the Border Security and Immigration Center at Heritage Foundation, told Fox News Digital that the dispatching had the ability to discourage illegal immigration in the US, which made it difficult to send back home.

“Illegal aliens usually want five things when coming to the US: to enter, to stay here, to work, send money home (dispatch), and bring family and/or children here,” he explained. “Stop those five things, and you prevent illegal immigration and encourage self-Ninda.”

The administration is working hard for illegal immigrants for self-taste, encouraging them to face the cost of commercial flights and offer $ 1,000 stipend to those who opt for self-detection. Reece said that apart from the raid of ice by dispatch, there may be another effective strategy that can help tighten the illegal immigration in the country and reduce the number of illegal migrants in the US

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However, Rees said that 1% must be too much to be effective.

“Only 1% tax on cash transfer is too low. The tax should be too high and cover all types of money transfer,” he said.

“So far, the US government has not touched the annual billions of dollars going out of the country, not benefiting the US economy,” she left. “Relations should be taxed to discourage unauthorized employment and its earnings.”

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Meanwhile, a senior policy analyst of the Migration Policy Institute, Ariel Ruiz Soto, told Fox News Digital that although he believes that the dispatch tax would have a significant impact, it could not be in the way of expectation of Trump administration.

He argued that Al Salvador, Guatemala, and Honduras discourage remittances in countries such as – where such payment accounts for more than 20% of GDP – can actually run more than nations.

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“If you are Honduras, if you are Al Salvador and Guatemala, even 1% tax, if it reduces remittance, may actually be a significant toll in the development of those countries,” he said. “If the residues actually decrease significantly, it can be potentially backfire on President Trump’s agenda to reduce irregular stay as it can actually make the circumstances, economic conditions more difficult in these countries and inspire new irregular immigration in the future.”

The House of Representatives is currently considering the version of the “large, beautiful bill” of the Senate.