The One, Big, and Beautiful Bill—sponsored by Republican Jason Smith in the House of Representatives.
Republican congressmen in the United States will introduce a bill this Tuesday seeking to impose a 5 percent special tax on remittances from “illegal immigrants,” as part of a package of tax provisions that, among other things, increases the tax on donations to “elite and progressive” universities and subjects the largest to the corporate tax rate.
The One, Big, and Beautiful Bill—sponsored by Republican Jason Smith in the House of Representatives—considers, among other measures, making permanent the tax cuts promoted by President Donald Trump in 2017 and stemming the flow of taxpayer money to illegal immigrants and China.
The goal, according to the proposal to be presented to the House Ways and Means Committee, the main tax-writing committee in Congress, is to end $500 billion in tax breaks and concessions to Biden-era special interests: the wealthy, large corporations, and China.
The bill specifies that undocumented immigrants will be required to pay a 5 percent tax on the amount they send through remittances, and certified remittance companies will be required to withhold that tax and later turn it over to the Treasury Department, unless it can be proven that verified U.S. citizens are sending the funds.
This seeks to prevent taxpayer benefits from reaching undocumented immigrants; To this end, a Social Security number will be required for those applying for tax credits and deductions, the eligibility of undocumented immigrants to receive premium tax credits under the Obamacare and Medicare programs will be ended, and new fees will be applied to remittance payments from undocumented immigrants outside the United States,” the explanatory statement details.
Last year, Mexico captured 10 percent of remittances sent worldwide, and since 2015, these flows have been the country’s main source of foreign currency (last year alone, they represented 44.4 percent). In addition to being crucial to the economies of several states, they represent 3.4 percent of the gross domestic product.
