The “One Big Beautiful Bill” is anything but beautiful, especially for the Indian community in the US.
This bill, which proposes a tax on foreign remittances, has now been passed by the US House of Representatives and is heading to the Senate. What is being dubbed as a “relief” is that the tax rate has now been reduced to 3.5% from the initially proposed 5%.
Also Read – Student Visa Sponsorship Realistic for Tourist Holders?
But is it a relief when in reality it is going up from 0 to 3.5%? Many Indians aren’t buying it. This will still hit the Indian diaspora the hardest as they are expected to pay over $1 billion every year.
Indian H-1B workers aren’t fooled. They’re frustrated at the idea of paying an excise tax on money they’ve already paid income tax on.
Also Read – OPT Nightmare: Students Forced to Work Without Pay
What’s more worrying is that the bill passed in the House without much resistance and many fear the Senate will follow suit. NRIs are seeing this as a warning sign of more anti-immigrant measures ahead.
If the bill becomes law, it will take effect from January 1, 2026. That means Indians might rush to send more money back home through 2025 before the tax hits.
Also Read – How Real Are Apple’s Concerns on Visa Restrictions?
This could hurt the US economy as money flows out in huge amounts. Thus, it could prove to be yet another reckless move by the US government in its obsession to punish immigrants.
