House Republicans’ sweeping tax proposal includes a 5% tax on some international money transfers known as remittances, setting up a lobbying battle for the industry groups representing companies that carry out those transactions.
But even budget hawks who have issues with the bill have said they support a remittance tax targeting people who are in the U.S. illegally. And as Republicans clamor to find billions of dollars to cover tax and border priorities, removing the provision could be difficult for its opponents.
People working in the U.S. send tens of billions of dollars in remittances to friends, relatives or others in foreign countries each year, according to the World Bank. Trade groups representing companies that send money abroad sent a letter last week urging the Ways and Means Committee against including a remittance tax in the mega-bill, but to no avail.