The proposed 5% remittance tax is a policy that would place a 5% fee on money sent from the United States to family members and loved ones abroad. Remittances are a critical financial lifeline for millions of families, funding essential needs like housing, education, medicine, and food.

Under this proposal, individuals sending money internationally would be required to pay a 5% surcharge at the point of transfer.

Far from strengthening the U.S. economy, the 5% remittance tax could do real harm:

• This tax doesn't stop families from sending money home—it just makes it more expensive. When families have to spend more to send money abroad, they won’t stop supporting their families. They’ll just have less to spend.

• The remittance tax disproportionately affects immigrants and Latino communities. And Latino communities, in particular, drive a significant share of U.S. consumer spending. When their disposable income shrinks, the ripple effects hit local businesses and weakens the broader economy.

A real understanding of the Latino cohort is essential to shaping smart policy—one that supports economic growth and respects the contributions of this hard-working population.