While the tax appears small, it’s added on top of existing costs, which can drive up the price of sending money.
The bill would impose a 5% tax on remittance payments, with exceptions for most transfers made by U.S. citizens.
Economic sanctions, as well as frauds and scams, tend to drive illicit crypto activity in the countries where it’s most prevalent.
Immigrants from El Salvador clustered in major cities often work demanding, low-paying jobs that are hard to fill — like janitors.
Migrants around the world sent nearly $670 billion back to family members in their home countries. For some countries, remittances make up a quarter to a half of GDP.
The Treasury Department has temporarily OK’d relief transactions. But most major money transfer companies won’t remit aid from the U.S. to Syria.
But remittances have actually fallen as the war has dragged on.
In a typical year, they send more than $500 million to family and friends. Now, it’s not easy.
Immigrants from Mexico and the Dominican Republic have been sending more money home than they were before the pandemic.
Latinx migrants tend to work in essential jobs. And their families back home could really use the support.
