Also billed as the Republican’s “One, Big, Beautiful Bill” and bullshit like this subtitle:
… the bill actually continues tax cuts for the wealthy on the backs of the working poor, those living hand to mouth, paycheck to paycheck. Buried starting at page 327 of 389 is a new 5% tax on remittances sent to family & friends overseas. This 5% tax is on top of the income taxes and the 15.3% (yes, the actual amount is twice the deduction that appears on your check stubs!) social security and medicare taxes that the sender has already paid, plus 2-4% in currency exchange fees.
Amidst the buzz surrounding the ambitious fiscal plan revealed by Republicans this week, a particular proposal has flown under the radar yet holds the potential to severely impact millions of workers and their families both within and outside the United States: a new tax on remittances sent abroad, costing up to $50 each month.
This initiative is part of the ‘ways and means bills,’ as termed by lawmakers aligned with President Donald Trump. The legislative package seeks to extend and expand tax exemptions implemented during his first term while introducing a series of public spending cuts. However, among the numerous provisions, the remittance tax stands out for its immediate and silent social impact.
The proposal specifically calls for a 5% tax on remittances sent from the United States. This levy would fall on the sender, meaning the worker in the U.S. who sends money to their home country to support loved ones, with an amount of $50 for every $1,000 sent.
With this tax, a monthly transfer of $300 could cost the worker an additional $15 in taxes, a figure that may seem small in macroeconomic terms but represents a significant expense for households living paycheck to paycheck.
Apparently there are a few Republicans who think the bill is not so big and beautiful.
https://thehill.com/homenews/administration/5304927-trump-agenda-shaky-congress