Remittance tax in a “big and beautiful bill” has a significant impact on immigration

The Senate version “A big, beautiful bill” Includes a small tax on international cash transfers, a 1% tax (called a remittance tax), which, according to experts, will have a significant impact on immigrants working in the United States

Remittances are a common practice for migrant workers who have part of their wages back to their family members. Tens of thousands of dollars are sent to other countries in the United States every year.

Earlier versions of the bill include higher tax rates and are specifically targeted Illegal immigration However, in the United States, the “big and beautiful bill” of remittances are charged only a 1% fee for cash transfers that have been sent to other countries rather than electronic transmissions. U.S. citizens who want to send cash to other countries will also be paid a 1% tax.

The tax is expected to bring additional revenue of $10 billion to the federal government. politics.

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In addition to generating additional revenue, Lora Ries, director of the Heritage Foundation’s Center for Border Security and Immigration, told Fox News that remittance taxes have the potential to prevent illegality migrant It is difficult to send money home when entering the United States.

“Illegal foreigners usually want five things to come to the United States: to enter, stay here, work, send money (remittance), and bring family and/or children here,” she explained. “Prevent these five things, you can prevent illegal immigration and encourage self-death.”

The government has been working hard to self-deprive it for illegal immigration. Inspire them By providing the cost of commercial flights and providing a $1,000 stipend to those who choose to deceive themselves. Received tax could be another effective strategy besides ice raids

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The Department of Homeland Security conducted its first return to school program, riding 64 illegal immigrants, who chose to deceive themselves and return to their homeland in May. (Division of Homeland Security)

However, 1% needs to be higher to be effective, Ries said.

“The tax on cash transfers is almost no, only 1% tax on cash transfers. The tax should be much higher and covers all types of remittances,” she said.

“So far, the U.S. government has not touched the annual billions of dollars of money going out, and has not benefited the U.S. economy,” she continued. “Taxes should be imposed to prevent unauthorized employment and its income.”

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A family of five claims to be from Guatemala, and one said he was Peru, wearing a pink shirt, across the desert, crossed the border wall of the U.S.-Mexico border in the Tucson region in the Organ Pipe Cactus National near Lukeville, Arizona on Tuesday, August 29, 2023. (Matt York/AP Photo)

Meanwhile, Ariel Ruiz Soto, senior policy analyst at the Immigration Policy Institute, told Fox News Digital that although he believes the remittance tax will have a significant impact, it may not be like Trump administration hope.

He believes that dissuading countries such as El Salvador, Guatemala and Honduras (such payments account for more than 20% of GDP) may actually drive more migration in these countries.

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“If you are Honduras, if you are El Salvador and Guatemala, even if the tax is reduced by 1%, or even a 1% tax, it can actually cause a significant loss to the development of these countries,” he said. “If the remains are actually going to be a big drop, it can backfire, and President Trump’s agenda reduces irregular immigration because he can actually make the situation in these countries more difficult and stimulate new irregular immigration in the future.”

The House is currently considering the Senate version of “Big and Beautiful Bill”.