US Senate has drastically reduced the proposed remittance tax under the latest draft of the ‘One Big Beautiful Bill Act,’ bringing it down to just 1%. Originally, the bill had suggested a 5% tax on all international money transfers made by non-US citizens, including H-1B visa holders and green card holders, with no exemption threshold, meaning even small transfers would have been taxed. Following criticism and concerns about the potential impact, the proposal was first lowered to 3.5%. Now, it has been reduced to 1%, with routine remittance transactions expected to be largely exempt under the new structure. According to the revised bill, the 1% remittance tax will only apply to qualifying transfers made after December 31, 2025.

The internet reacted to the changes in the draft. A user said, “Who is lobbying Republicans in the US Senate to lower remittance taxes? The very concept of remittances is what partially drives mass migration and globalization.”

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Another claimed,” Senate Republicans are watering down the remittance tax from 3.5% to just 1%. House GOP BBB passed 5%, but the Senate caves — again! So, H-1Bs replace American workers, then get rewarded for wiring U.S. wages to countries profiting off our offshored jobs. Absolute betrayal!.”

A user noted, “Remittance taxes- They just couldn’t do it could they! It’s all one big show! It went from 30% to 3.5% to just 1%. When our Republicans brag about this Reconciliation Bill folks mock them to their faces.”

“My feelings about the BBB now that the tax on remittances has been reduced to 1%,” noted a netizen. “We wanted higher remittance taxes and instead we got them slashed and lost the hearing protection act. I hate the GOP,” added another.