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4d ago

House Passes Controversial 3.5% Remittance Tax Targeting Immigrants

The tax, part of the broader OBBB Act, narrowly cleared the House and moves to the Senate, raising concerns over economic and diplomatic impacts.

Trump's recently proposed clause, known as the “Excise tax on remittance transfers,” levies a 5% excise duty on remittance transfers.
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Overview

  • The U.S. House of Representatives approved the One Big Beautiful Bill Act (OBBB) in a 215-214 vote, including a 3.5% excise tax on remittances by non-citizens.
  • Originally proposed at 5%, the remittance tax was reduced to 3.5% through a last-minute Manager’s Amendment before the House vote.
  • The tax applies to legal immigrants, including Green Card holders and visa holders, but exempts U.S. citizens and nationals.
  • Critics argue the tax unfairly targets immigrants, creates economic distortions, and could harm the U.S.'s reputation as a safe haven for investment.
  • If enacted, the tax is projected to generate nearly $1 billion in 2026 and slightly less than $22 billion over the budget window, with implementation set for January 2026.