US Remittance Tax Bill Faces Senate Hurdle

The US House of Representatives has passed a bill, known as Trump's 'One Big Beautiful Bill,' proposing a 3.5% tax on remittances sent abroad by non-US citizens, including H-1B visa holders, Central American workers, and Bangladeshi migrants. The measure could significantly impact major recipient countries such as India, Mexico, and Bangladesh, with $656 billion in remittances having left the US in 2023. Critics warn that the tax would disproportionately affect low-income migrants, drive remittances to informal and illegal channels, and potentially breach international treaties. There are also concerns that the policy could deter foreign students and skilled workers from choosing the US. Mexico and India have formally objected, citing serious economic and social repercussions. The bill awaits Senate approval, with the earliest possible enactment in June 2025.