Washington:
Late Sunday night, the U.S. House Budget Committee moved forward with President Donald Trump’s “One Big Beautiful Bill Act.”
This proposed legislation aims to impose a 5% tax on all international remittances sent by non-U.S. citizens, which includes non-immigrant visa holders like those on H-1B visas and green card holders. If the bill is passed, 5% of the remittance will be withheld at the time of the transfer. There are no exemptions in place, meaning even small transfers will be taxed.
Interestingly, the 1,116-page bill specifies that this 5% tax does not apply to transfers from “verified U.S. senders.”
This law could significantly impact around 45 Indians in the U.S., contributing to a larger pool of about 320,000 individuals of Indian descent. According to a remittance survey by the Reserve Bank of India (RBI) in March, out of the total $118.7 billion sent in remittances between 2023 and 2024, nearly 28%—approximately $32 billion—originated from the U.S. If this tax comes into effect, Indian communities might face a $1.6 billion remittance tax (5% of $32 billion).
The proposed tax extends beyond cash remittances, also affecting the transfer of investment income or proceeds from stock options, which many non-resident Indians rely on to support families back home and invest.
Funding for Large-scale Deportation
This legislation targets immigrants in various ways. It plans to allocate $46.5 billion to recommence construction of the Trump Wall along the U.S.-Mexico border and bolster the deportation initiative. This includes hiring 3,000 new Border Patrol agents, 5,000 customs officials, and an additional $4 billion to recruit and retain personnel, along with 10,000 new immigration enforcement officers.
There are also significant alterations to immigration policies, such as imposing a $1,000 fee for asylum seekers—something previously unseen in the U.S., though similar to approaches taken by countries like Australia and Iran.
The overall objective seems to be reducing the immigrant population by 1 million annually while holding 100,000 individuals in detention centers.
On Friday, a faction of Budget Committee Hardliners had attempted to halt the lawsuit’s progress, defying Trump and Republican leadership. Yet, during the vote on Sunday, the bill passed narrowly at 17-16, moving it closer to a floor vote.
