Current Affairs - Economy - Discussion

The proposed legislation introduced in the US Congress suggests a 5% excise tax on all international remittances made by non-citizens, including H-1B and F-1 visa holders. This provision, outlined in Section 112105 of the bill titled “The One Big Beautiful Bill,” would primarily impact immigrant communities such as the Indian diaspora, which remitted over $23 billion to India in 2023 alone. The tax aims to generate revenue by applying a $50 charge for every $1,000 transferred abroad. The measure has sparked concerns over economic fairness, the risk of increased use of informal transfer channels, and potential burdens on immigrant workers and their families.