A new tax proposal introduced by House Republicans on May 12, 2025, could significantly impact Non-Resident Indians (NRIs) and other foreign workers living in the United States. The bill includes a contentious provision: a 5% tax on international money transfers made by non-citizens. If passed, this would mark a significant shift in U.S. tax policy, especially for immigrants who regularly send remittances to support families in their home countries.

The proposed legislation seeks to make the 2017 Tax Cuts and Jobs Act permanent. It also includes plans to increase the standard deduction and extend the child tax credit to $2,500 through 2028. US President Donald Trump has thrown his support behind the bill, calling it “GREAT” and urging Republicans to push it through Congress.

Proponents argue that the remittance tax would help fund these tax cuts and support border security initiatives, potentially generating billions for the U.S. Treasury.

The proposal has sparked debate online, especially among NRIs and immigrant communities. One user defended the measure, writing, “Honestly don’t see a problem with this. The best and brightest of India come here, earn big money, and then send it home instead of stimulating the U.S. economy. It feels like taking advantage of the system.”

Another commenter added, “It’s a great idea. Money sent abroad doesn’t get spent domestically, so the U.S. misses out on derivative taxes. Plus, it might help reduce illegal immigration.”

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But others strongly disagreed. “How is this fair?” asked one user. “If a work visa holder is laid off, they have to leave immediately. Now you’re telling them that their legally earned, already-taxed money will be taxed again just for sending it home? That’s wrong.”

Another noted the uncertainty around the bill’s future: “No law has passed yet. I’d like to believe Congress won’t damage the dollar’s reputation as the world’s reserve currency. But who knows these days.” As the bill awaits congressional debate, immigrant communities and advocacy groups are closely watching developments, fearing the potential financial burden and broader implications of such a tax.