Organisation of Indian Origin People in the US Objects to Proposed Tax on Immigrants' Remittance
New Delhi: The Global Organisation of People of Indian Origin (GOPIO) has objected to the proposed 5 per cent proposed 5 per cent tax on remittance by immigrants to their home countries.
The proposal is being considered in the Congress as part of The Republican tax and health plan.
“These immigrants, we presume have earnings reported either on their W2 or 1099 or 1098 or such forms within their tax returns. It is of utmost importance to bear in mind that the Immigrant Workers are already presumably paying their FAIR SHARE of Federal, State and additional taxes on said earnings and the said Funds are After-Tax Funds,” said the GOPIO in a statement.
The new 5 per cent tax on remittances impacts different visa categories for immigrants who have availed loans from their country of origin and are now remitting funds from After-Tax earnings to repay such loans along with accumulated interest as they do not qualify for loans from US banking and financial institutions.
“GOPIO believes that if a study were to be conducted, it would show that such additional tax on remittances would primarily affect low-income families disproportionately because most remittances are to families who depend on the immigrant for financial support,” said Prakash Shah, president GOPIO.
“Therefore, any additional tax imposed on mere transfers of said After-Tax Income would be termed as double taxation and should be considered as unfair and selective,” said the GOPIO.
The GOPIO said that the proposed tax on remittances could have unintended consequences wherein the immigrants could resort to use of illegal channels via crypto currency held in digital wallets to remit the funds overseas and avoid payment of 5 per cent on remittances.
House Republicans plan to move ahead with a vote this week on the legislation containing US President Donald Trump's second term agenda, which includes spending on tax cuts, as well as border security and defense priorities.
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