Visakhapatnam: A new tax proposal in the U.S. has raised worries among immigrant groups, especially within the Indian community, who might face over a billion dollars in extra expenses each year.
If this tax goes through, it will impact both non-immigrant visa holders and green card holders—essentially anyone who is not a U.S. citizen and sends money abroad. The proposed legislation, informally called "the one big, beautiful bill," would enforce a 5% tax on money transfers from non-U.S. citizens to people outside of the country. This provision can be found on page 326 of a lengthy document titled Remittance.
Experts in cross-border investments believe the bill is likely to be approved quickly, with the House of Representatives planning to pass it this month. Once approved, it will head to the Senate and could become law as soon as June or July. They are advising Indian expatriates to consider making larger transfers soon to avoid the upcoming tax.
K. Ashok, a former board member of the Telugu Association of North America (TANA), shared his concerns, stating, "Remittances are not just financial transactions; they provide crucial support for families overseas, often covering vital needs like healthcare and education." He cautioned that such a tax could put extra financial pressure on law-abiding residents who contribute positively to the U.S. economy. He called for a careful look at the broader effects of these policies, particularly on vulnerable groups.
RGK Prasad, whose son Karthik works in finance in Texas, expressed that the tax burden should fall on companies instead.
Pravallika Patruni, a healthcare data engineer from Richmond, Virginia, who is a U.S. citizen, mentioned that the tax plan is aimed at reducing illegal immigration while generating needed revenue for domestic programs. She believes that by financially penalizing those who hire undocumented workers, the government can bolster border security and legal employment standards.
Patruni also raised concerns about how this policy might affect diplomatic relationships and labor-intensive sectors. She suggested that affected industries should work with government officials to ensure smooth changes and develop local talent pipelines to reduce reliance on unauthorized labor.
