REMITTANCE Act
Rep. Roy Proposes 25% Tax on Money Sent Abroad in New REMITTANCE Act
The REMITTANCE Act is currently in the early stages of the legislative process. It was recently introduced and sent to the House Committee on Ways and Means for review. The bill is actively moving forward as it waits for the committee to consider it.
Legislative Progress
This is a highly partisan proposal that faces significant opposition from immigrant advocacy groups and the financial services industry. It is currently sitting in a committee with no broad support.
Key Points
Impact Analysis
Personal Impact
Undocumented immigrants who send money to family members in their home countries would face a 25% tax on every dollar transferred. Many rely on remittances to support dependents abroad, so this tax would significantly reduce the amount that actually reaches their families. They would not qualify for the refundable tax credit since it is limited to U.S. citizens.
“In the case of any individual who is a citizen of the United States, there shall be allowed as a credit against the tax imposed by this subtitle”
State Impacts
Milestones
Referred to the House Committee on Ways and Means.
Introduced in House
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
Related News
2 articlesChip Roy Pushes Massive 25% Tax On Money Illegal Aliens Send Overseas
The REMITTANCE Act, introduced by Rep. Chip Roy, seeks to impose a 25% tax on money sent abroad by illegal aliens. The bill expands on the 1% tax from the 'One Big Beautiful Bill,' with Roy stating that billions are flowing out of the U.S. while taxpayers fund services for non-citizens.
IRS Proposes Regulations for New Remittance Tax
The IRS and Treasury Department issued proposed regulations for the 1% excise tax on remittances established under the One Big Beautiful Bill Act. The rules clarify that the tax applies to cash and paper-based transfers, providing the framework that new proposals seek to increase to 25%.
Source Information
Document Type
Congressional Bill
Official Title
REMITTANCE Act
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.