Brief by Shorts91 Newsdesk / 04:15am on 28 May 2025,Wednesday India Global
Former U.S. President Donald Trump’s proposed “One Big Beautiful Bill” includes a 3.5% tax on remittances sent abroad by non-citizens, including H-1B visa holders and green card residents. This measure, pending Senate approval, could significantly affect Indian immigrants, who sent $32 billion to India in FY 2023–24. Critics argue the tax is economically unjustified, as remittances are personal funds already taxed in the U.S., and such levies are rare globally. The policy may prompt India to consider reciprocal taxes on U.S. companies and investors, potentially straining bilateral economic relations. Experts warn the tax could deter skilled immigrants and push remittance flows into informal channels, undermining financial transparency. (PC: The Print)
