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4mo ago

House GOP Pushes Remittance Tax Targeting Immigrants, Faces Global Backlash

A proposed 5% tax on money transfers by non-U.S. citizens, exempting U.S. nationals, is set for a House vote by Memorial Day as critics warn of economic and diplomatic fallout.

President Donald Trump signs the guest book after touring the Abrahamic Family House, Friday, May 16, 2025, in Abu Dhabi, United Arab Emirates.
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House Speaker Mike Johnson speaks during a press conference in Washington, D.C. on May 14, 2025.
Several of the provisions President Trump touted on the campaign trail would be temporary, lasting roughly through his second term in office.

Overview

  • The proposed 5% excise tax on remittances by non-U.S. citizens aims to fund tax relief extensions and border security projects, with a potential implementation date of July 4, 2025.
  • The tax would affect over 40 million immigrants, including green card holders and visa holders, while exempting U.S. citizens and nationals.
  • Foreign leaders, including Mexico's President Claudia Sheinbaum, have condemned the measure as unjust and warned of double taxation and economic harm to recipient countries.
  • Experts caution the tax could reduce remittance flows, destabilize vulnerable economies, and incentivize informal transfer methods, complicating financial oversight.
  • The bill, part of President Trump's broader tax and border security agenda, has passed committee review and faces a full House vote by May 26, with Senate deliberations to follow.