Ndiho Media,LLC.

By Ndiho Media
A 5% remittance tax suggested by Republicans in the House is cause for alarm among immigrant families, remittance companies, and international finance professionals. The legislation, part of a more comprehensive Republican package tied to President Trump’s policies, is aimed explicitly at green card holders and temporary visa workers, not U.S. citizens.

Supporters contend that it will dissuade illegal immigration and bring added federal revenue. Opponents respond that it penalizes legal workers, many of whom remit money back to family members.

The World Bank forecasts that remittances sent back into low—and middle-income countries in 2025 will hit $685 billion, surpassing the amount they receive as foreign direct investment and aid combined. In Africa, exceeding Nigeria, Egypt topped the continent with $22.7 billion of remittances last year, most of it from Egypt’s diaspora. A significant growth in the amount of money sent back has even hit Ghana.
Well before the tax was proposed, Western Union reported a decrease in remittances from the U.S. sent to other parts of the world.