Chip Roy Proposes 25% Tax on Remittances Sent by Illegal Immigrants

New Bill Proposed to Tax Remittances from Illegal Aliens

Representative Chip Roy (R-Texas) is set to introduce legislation that would impose a 25% tax on remittances sent by illegal immigrants to their home countries.

This proposal expands upon the previous year’s “One Big Beautiful Bill,” which significantly raised the remittance tax on illegal aliens from 1% to 25%.

Roy expressed to Breitbart News that the U.S. economy has faced negative consequences due to both legal and illegal immigration, alongside the outflow of dollars through remittances.

As of 2021, it’s estimated that illegal aliens have sent around $200 billion back to their countries. Mexico received the highest amount, with over $52 billion transferred from the U.S. that year.

In certain Central American nations, these remittances constitute a substantial part of their Gross Domestic Product (GDP).

Roy stated, “While roughly $200 billion is sent annually to relatives and business partners abroad, those sending these funds often utilize more taxpayer-funded public services than they contribute, which exacerbates unchecked migration and drains U.S. capital.” He added that the Money Transfer Act reaffirms Congress’s commitment to tackling illegal immigration while fostering robust economic policies.

The proposed Money Transfer Act has garnered support from the Immigration Responsibility Project (IAP) and the Federation for American Immigration Reform (FAIR), prominent organizations advocating for reduced immigration to the U.S.

IAP’s Rosemary Jenks commented, “American taxpayers are burdened with supporting foreign nationals—both legal and illegal. The fact that a large portion of this money is sent abroad as remittances is unacceptable. We commend Congressman Roy for his introduction of this Transfer Act.”

FAIR’s Joe Chatham emphasized that the bill seeks to “end the misuse of our laws that contribute to illegal immigration and related criminal activities,” adding that it would help mitigate the costs associated with illegal immigration while bolstering the economy.