Each year, migrants send tens of billions of dollars out of the United States — often landing in cartel coffers.
That may be good for migrants and drug lords, but it’s bad for the American economy. That’s why Congress is considering a new tax on money flowing out of the country. Advocates say the tax would penalize illegal immigration, impose new costs on criminal networks, and increase government revenue, all without impacting Americans’ wallets.
Remittance outflows from the United States — when migrants send money back to their countries of origin — have steadily increased in recent years. Data from the Migration Policy Institute reveal that just over $66 billion was sent out of the American economy in 2020. That number climbed to $73.7 billion in 2021 and $81.6 billion in 2022. By 2023, remittance outflows hit nearly $86 billion.
Now, a five percent remittance tax, which…
