“Remittance” is the term used to describe money sent from a country in which a guest worker or resident alien is working to his or her home country. More than $100 billion, that’s billion with a “b”, is sent from the United States to other countries annually with India, China, Philippines, and Mexico being the biggest destinations for funds.
Should we tax remittances?
Sure! Let’s put the rate at 50%.
The U.S. loses money on this only if cash is sent. Unfortunately it doesn’t seem possible to get reliable numbers on this.
Of course we shouldn’t tax remittances, which represent fair wages paid for work done by foreigners for Amerikans. We Texans for sure couldn’t do without our day laborers who “work like Mexicans.”
How?
I think all capital leaving the country should be taxed, but it would be difficult to collect and enforce.
Nonsense. They use Western Union, who would gladly pay the tax as a cost of doing a lucrative business
I’m not sure why we would think remittances taxable? I’m free to spend my money more or less as I wish—certainly to include giving it to members of my family. Over a certain amount, those taxable by the US Treasury would owe a gift tax unless certain exemptions are met. But foreign nationals aren’t subject to paying US taxes.
Sending cash abroad is a demand drain.