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Why the U.S. Must Heavily Tax Remittances

9 29
25.07.2024

One of the most under-discussed drivers of illegal immigration is the explosion of remittances, which has created a major economic incentive for foreign nationals to pour into the U.S.

Immigrants of both the legal and illegal variety are coming to the U.S., earning money, and sending it back home instead of putting it into the U.S. economy. Take for example, Nicaragua, which received a record $462.4 million in remittances during the month of May, with $385.9 million coming from the U.S., according to a report cited by Breitbart News. As Breitbart points out, not only is this money not going into the U.S. economy, but it is going to a repressive, communist regime in Nicaragua supported by U.S. adversaries, including China, Russia, and Iran. This is a major problem for the U.S.; Americans have a right to expect that money earned through the American economy will go back into the American economy, not to foreign countries.

Of course, it is reasonable to expect that people who come here will send some money they earn back to family members who still live in their home countries. However, this must be done in a responsible way that benefits the U.S., and does not create harmful incentives.

Every year, hundreds of billions of........

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