Fact Check: New bill imposes a 1% tax on cash-based international remittances.

Fact Check: "New bill imposes a 1% tax on cash-based international remittances."

What We Know

The claim that a new bill imposes a 1% tax on cash-based international remittances is misleading. The current legislative proposals, particularly the "One Big Beautiful Bill Act," include a 3.5% excise tax on remittance transfers, which is set to take effect after December 31, 2025. This tax applies to certain remittance transfers primarily made for personal, family, or household purposes to accounts outside the United States, and it includes exceptions for transfers made through specific financial institutions or funded with U.S. debit or credit cards (source-4).

The Senate Proposal, which is a revision of the House Bill, does not propose a 1% tax but rather maintains the 3.5% rate, with discussions around potential adjustments still ongoing (source-2, source-3).

Analysis

The assertion that a 1% tax is being imposed is not supported by the current legislative text or proposals. Instead, the 3.5% excise tax is the figure being discussed in the context of remittances (source-4).

While there have been discussions about modifying the tax rate, including suggestions to increase it to 5% (source-6), the claim of a 1% tax appears to be a misinterpretation or misrepresentation of the ongoing legislative process. The Senate Proposal aims to limit the applicability of the tax significantly, but it does not introduce a lower rate than what has already been proposed (source-4).

The sources used in this analysis are credible, including legislative documents and reputable news outlets that cover congressional actions. However, the claim itself does not reflect the current legislative reality and may stem from confusion regarding the evolving nature of tax proposals.

Conclusion

Verdict: False. The claim that a new bill imposes a 1% tax on cash-based international remittances is incorrect. The current legislative proposals include a 3.5% excise tax on remittance transfers, with specific exceptions, and there is no indication of a 1% tax being enacted.

Fact Check: New bill imposes a 1% tax on cash-based international remittances.