The US might soon start taxing NRIs just for supporting their families back home. A new bill backed by President Donald Trump is going to impose a 5% tax on remittances sent by non-citizens, including those on H-1B, F-1 visas, and even green cards.
The bill, being called the “One Big Beautiful Bill,” narrowly passed the House Budget Committee with a 17-16 majority last week. It is now heading for a full House debate, and if passed, Trump could sign it by July 4th.
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This is a huge blow for NRIs. In 2023-24, Indians in the US sent a massive $32 billion back home. A 5% tax means the community would have to pay more than $1.6 billion a year.
As expected from the new US president, this is another targeted attack on immigrants. Even the legal, high-skilled professionals and students who pay taxes and boost the economy will get no exemption from this added cost.
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If it is passed, it is believed the tax will be imposed only from January 1, 2026. Thus, the panic could see a rush among the Indians to send as much cash back home before the end of the year.
The “One Big Beautiful Bill” is just a sinister name for this nightmare for the Indian diaspora. It is the latest step from Trump’s administration to make immigrants’ lives difficult in the US.
