Trump to tax remittances

First, they dismantled USAID and obliterated foreign aid. Then they indiscriminately imposed higher tariffs that placed impoverished countries on edge. Now they want to tax remittances of workers that make poverty-stricken lives in the Third World bearable.

- BOO CHANCO

What's happening to the America we know?

Trump and the House Republicans want to tax remittances to raise money to fund more tax breaks for wealthy Americans, and reduce the deficit.

The proposal is part of Trump's "One Big, Beautiful Bill." It imposes a five percent tax on remittance transfers sent by individuals in the US who are not citizens, including green card and visa holders.

That would cover over 40 million people in the US.

Republican leaders hope to get the House to pass the tax bill by Memorial Day and forward it to the Senate and get it to Trump's desk by their Fourth of July recess. But the latest word is that the draft bill was voted down in the committee so it may take more time. Expect Trump to push it.

Trump also recently announced that he is finalizing a presidential memorandum to "shut down remittances" sent by illegal immigrants in the US to discourage illegal migration. White House and Treasury officials have not provided specifics of the presidential memorandum that Trump previewed in an April 25 Truth Social post.

But taxing and/or shutting down remittances as a strategy to address illegal immigration in the US may not work and may also have unintended consequences, like remittances going underground and making these more difficult to monitor and regulate.

The US is known to be the largest worker remittances sender globally. In 2023, remittances from the US to the Philippines reached approximately $13.7 billion, accounting for about 40.9 percent of the total cash remittances of $33.5 billion sent through banks.

In 2024, the trend continued with cash remittances rising to $34.49 billion, a three percent year-on-year increase.