Potential 5% US tax on remittances

[windeguy]

Immigrants​

Several provisions would raise taxes on immigrants. That includes a new 5% tax on transfers of money to foreign countries, known as remittances. Many immigrants in the US send money to relatives in their countries of origin. US citizens could apply for credits to offset that cost.

The proposal also would restrict some immigrants’ access to tax credits for health coverage premiums. The change would prevent immigrants granted asylum or temporary protected status from accessing those credits.

https://archive.ph/y9llG#selection-2865.0-2881.212

 

[SKY]

This is bad news for the people sending money to relatives in the DR..........

 

[Manuel01]

This is bad news for the people sending money to relatives in the DR..........

Not really. Everybody has somebody closed that will travel to the DR anyway.
They just bring in more Cash. Or send them a US Debit Card to withdraw $ from any ATM here. There are a hundredandone ways around this.

 

[Jan]

What about when you send monies to yourself or transfer money from your bank in USA? It really is not a remittance but can seem as if it is one.

 

[Father Guido]

This is bad news for the people sending money to relatives in the DR..........

and good news to American taxpayers like me

 

[SKY]

and good news to American taxpayers like me

If you are lucky in 20 years you should get enough money to buy one Platino.............

 

[Father Guido]

5% is nothing, should be closer to 20%

 

[El Hijo de Manolo]

The cost of money laundering goes up, never down

 

[SKY]

The cost of money laundering goes up, never down

So you are suggesting that all Dominicans legally working in the US that send money to support their families in the Dominican Republic ore laundering money?................

 

[johne]

and good news to American taxpayers like me

You joke around a lot. Check your water it might be hurting you amigo.

 

[johne]

Immigrants​

Several provisions would raise taxes on immigrants. That includes a new 5% tax on transfers of money to foreign countries, known as remittances. Many immigrants in the US send money to relatives in their countries of origin. US citizens could apply for credits to offset that cost.

The proposal also would restrict some immigrants’ access to tax credits for health coverage premiums. The change would prevent immigrants granted asylum or temporary protected status from accessing those credits.

https://archive.ph/y9llG#selection-2865.0-2881.212

Excellent link. Does it have a paywall after a time? Because it seems to be by subscription.

 

[El Hijo de Manolo]

So you are suggesting that all Dominicans legally working in the US that send money to support their families in the Dominican Republic ore laundering money?................

I'm not suggesting anything good sir. I am stating what is well known, and that is a very large percent of remittances have origin of racketeering-based operations like drugs and other criminal enterprises.

 

[CristoRey]

Treasurey Secretary Scott Bessent proposed this idea back in November of last year.

Considering how much money they've cheated, beat and milked out the US Taxpayer, this should have happened years ago. From the billions in free foreign-aid to free healthcare and education for their children...
5% is not nearly enough. Should be at least 25% for countries like Mexico and Venezuela.

 

[El Hijo de Manolo]

Treasurey Secretary Scott Bessent proposed this idea back in November of last year.

Considering how much money they've cheated, beat and milked out the US Taxpayer, this should have happened years ago. From the billions in free foreign-aid to free healthcare and education for their children...
5% is not nearly enough. Should be at least 25% for countries like Mexico and Venezuela.

Well, it would be the only way to even begin to recuperate the billions in care/caid, including housing, food, and free healthcare that the American taxpayers have footed the bill for. As they deport more, that money is gone forever. Unfortunately, folks like me, who have a network of folks that get paid on DR soil, I would have to resort to bank wires. I could easily see grouping wires to once or twice per month for the 30 USD fee, but the millions of unbanked illegals would have no other recourse. And hence, a very good idea.

 

[JLSawmam]

I use wire transfers from my US bank to my DR bank account. If those transfers are subject to the 5% tax, then my monthly expenses will go up by roughly $125 US I'm not sure using a US debit card as suggested in post #3 is all that feasible, due to ATM withdrawal limits and the ensuant need to deposit pesos more often in my DR account. I'd also have to check what fees my bank may charge for such debit card use...I realize that varies and for some would not be an issue.

IMHO, this 5% tax is unfair to those who earn their money legitimately, as that money has already been taxed at the federal level and also at the state and local levels as applicable, This is true for those who are in the US on work visas too, assuming their employers are doing things legally. I assume sports professionals such as Juan Soto send money back home to the DR...sorry, Juan, gotta get that 5% from you too!

 

[SKY]

"The Land of the Free"........NOT...........

 

[windeguy]

Excellent link. Does it have a paywall after a time? Because it seems to be by subscription.

The link comes from a browser add on in Chrome called Archive Page. It lets you see many sites that have a subscription like the NY Times.
I have it installed on the Vivaldi browser.

 

[windeguy]

I deposit checks for expenses in the DR. Been doing that since 2003. No need for anything more complex in my situation.

The US government will tax anything it can and does so. Taxing those checks? Unlikely but you never know.

SS Payments were promised to be removed from taxation, but apparently that is not happening in the current big beautiful bill.

 

[JD Jones]

I deposit checks for expenses in the DR. Been doing that since 2003. No need for anything more complex in my situation.

The US government will tax anything it can and does so. Taxing those checks? Unlikely but you never know.

SS Payments were promised to be removed from taxation, but apparently that is not happening in the current big beautiful bill.

SS is too big for any govt. to ignore.

 

[El Hijo de Manolo]

SS is too big for any govt. to ignore.

The single biggest heist of the American taxpayers in the history of the human race