Trump's remittance tax aims to slow illegal immigration by targeting the money flow

The Senate s version of the one big beautiful bill includes a tiny tax on international cash transfers called a remittance tax which according to experts will have a major impact on immigrants working in the U S A remittance is a money transfer to another country outside the U S which is a common practice among immigrant workers who send part of their wages back to family in their native countries Tens of billions of dollars in remittances are sent to other countries from the U S every year Earlier versions of the bill included higher tax rates and specifically targeted illegal immigrants sending money outside the U S The current version of the big beautiful bill however imposes a fee only on cash transfers not electronic transfers sent to other countries U S citizens who want to send cash to other countries will also be subject to the tax The tax is expected to generate billion in extra revenue for the federal governing body according to an estimate done by Politico TRUMP'S 'BIG BEAUTIFUL BILL' CLEARS FINAL HURDLE BEFORE HOUSE-WIDE VOTEBesides generating extra revenue Lora Ries director of the Edge Safeguard and Immigration Center at The Heritage Foundation explained Fox News Digital that the remittance tax has the expected to discourage illegal immigration into the U S by making it harder to send money back home Illegal aliens generally want five things when coming to the U S to enter to remain here work send money home remittances and bring family and or have children here she explained Prevent those five things and you prevent illegal immigration and encourage self-deportation The administration has been pushing hard for illegal immigrants to self-deport incentivizing them by offering to front the cost of commercial flights and providing a stipend to those who opt to self-deport Ries declared the remittance tax could be another effective strategy besides ICE raids that could help to crack down on illegal immigration into the country and reduce the number of illegal immigrants in the U S TRUMP TO BEGIN ENFORCING BIRTHRIGHT CITIZENSHIP ORDER AS EARLY AS THIS MONTH DOJ SAYSRies explained however that the demands to be much higher to be effective A tax only on cash transfers does very little The tax should be much higher and cover all types of money transfers she commented Until now the U S establishment has not touched the annual billions of dollars going out of the country not benefiting the U S economic activity she went on Remittances should be taxed to discourage unauthorized employment and its earnings ELON MUSK'S ATTACKS ON TRUMP'S 'BIG BEAUTIFUL BILL' HAVE 'NO BASIS ' SAYS NO HOUSE REPUBLICANMeanwhile Ariel Ruiz Soto a senior plan analyst at the Migration Protocol Institute recounted Fox News Digital that though he believes the remittance tax will have a important impact it may not be in the way the Trump administration hopes He argued that discouraging remittances to countries like El Salvador Guatemala and Honduras where such payments account for more than of the GDP could authentically drive more migration from those nations CLICK HERE TO GET THE FOX NEWS APP If you're Honduras if you're El Salvador and Guatemala even a tax if it decreases the remittances could certainly be a vital toll in the growth of those countries he noted If the remains were certainly to decrease significantly that could potentially backfire on President Trump's agenda to reduce irregular migration because he could indeed make circumstances economic circumstances in these countries more intricate and spur new irregular immigration in the future The House of Representatives is as of now considering the Senate s version of the big beautiful bill