How Trump's 'Big, Beautiful Bill' Impacts Funds Transferred To India

The US House recently passed a bill introducing a 3.5% tax on outbound remittances, a move that could significantly alter global financial flows. Dubbed Trump's 'Big, Beautiful Bill,' this legislation aims to generate revenue by targeting money sent abroad. Given the vast number of international money transfers originating from the US, this tax could have far-reaching implications for economies worldwide. India, currently the largest recipient of remittances, stands to be notably impacted by this new tax. In 2022 alone, India received over $80 billion from its diaspora, underscoring the critical role these funds play in its economy. The additional tax burden on remittances could lead to a decrease in the amount of money sent home, affecting millions of families who rely on these funds for their daily needs and broader economic activities. Economists are closely monitoring the situation to gauge the long-term effects on bilateral trade and financial exchanges. While some argue that the tax could encourage more funds to be invested within the US, others worry about the potential slowdown in global remittance flows. As the bill moves forward, stakeholders in both the US and India are keenly awaiting further developments to understand the full impact of this legislative change.

— Authored by Next24 Live