REMITTANCE Act
Sponsored By: Representative Roy, Chip [R-TX-21]
Introduced
Summary
This bill would sharply raise the excise tax on remittance transfers to 25% and pair that hike with a refundable credit for U.S. citizens who pay the tax. It would also require collected amounts to be deposited into the Treasury general fund for deficit reduction and direct the Treasury Secretary to issue regulations and technical tax-code updates to implement the change.
Show full summary
- Families and households who send money abroad would face a much higher excise tax on remittance transfers, rising to 25% from 1%. This increases the direct cost of sending remittances.
- U.S. citizens who pay the excise tax on remittances for business or travel purposes could claim a refundable credit equal to the tax they paid, subject to rules set by the Secretary.
- Federal finances would receive the revenues from the higher tax and those amounts would be deposited in the Treasury general fund for the sole purpose of deficit reduction.
- Tax administrators would need to issue regulations and add cross-references in the tax code to integrate the new refundable credit.
*It would direct revenues from the higher remittance excise tax into the Treasury general fund for deficit reduction.*
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 1 benefits, 1 costs, 0 mixed.
Refundable remittance tax credit
You would be able to claim a refundable tax credit if you are a United States citizen. The credit would equal the total excise tax you paid under section 4475(b)(1) for business or travel transfers during the year. The Secretary would issue guidance or regulations to implement the credit. The credit would apply for taxable years ending after the date of enactment.
Higher remittance tax for senders
If enacted, the excise tax on remittance transfers would rise from 1% to 25%. If you send money abroad, you would pay an extra 24% of each transfer amount. The bill would adopt the Electronic Fund Transfer Act definitions of "remittance transfer", "provider", and "sender". That change would widen which transfers and which people must pay the tax. Amounts collected would go into the Treasury general fund and be used only to reduce the federal deficit. The changes would take effect as if included in section 70604 of Public Law 119-21.
Sponsors & CoSponsors
Sponsor
Roy, Chip [R-TX-21]
TX • R
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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