New York, NY – The Global Organization of People of Indian Origin (GOPIO) issued a statement strongly objecting to a proposed 5% tax on remittance by immigrants to their home countries, a measure included in The Republican tax and health plan currently under consideration in Congress. The organization argues that the tax unfairly targets immigrants, many of whom are already contributing significantly through existing taxes.
House Republicans are pushing forward with a vote this week on a sweeping legislative package that includes President Trump’s second-term agenda, featuring tax cuts, border security measures, and defense priorities. However, divisions within the GOP have cast doubt on the bill’s passage. To rally support, President Trump personally met with House Republicans on Tuesday, urging them to back the legislation.
The bill is scheduled to go before the House Rules Committee today, where any last-minute amendments could be introduced. Key Republican representatives, including Rep. Roy and Rep. Norman—both members of the Rules Committee—could pose a final hurdle. If the bill clears the committee, a full House vote is expected on Thursday, May 22, right before lawmakers adjourn for the Memorial Day recess.
GOPIO has raised several concerns about the proposed 5% tax, arguing that it disproportionately affects immigrants who are already fulfilling their tax obligations. Many immigrants in the U.S. on work visas (such as H-1B, L-1, and diplomatic visas) earn wages that are already subject to federal, state, and local taxes. These remittances are made from after-tax income, meaning that imposing an additional 5% levy amounts to double taxation.
“GOPIO believes that if a study were 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 of GOPIO.
Furthermore, the tax would also burden international students (F-1 visa holders) and exchange visitors (J-1 visa holders) who rely on remittances to repay education loans taken in their home countries. Since many of these individuals do not qualify for U.S. bank loans, they depend on overseas financial support, making the additional 5% tax an undue hardship.
Another major concern is that the tax could push immigrants toward resorting to unregulated channels, such as cryptocurrency held in digital wallets to remit the funds overseas, to avoid the extra cost. This could lead to a loss of transparency in cross-border financial flows and potentially increase illegal transactions.
GOPIO urges immigrant communities—particularly Indian Americans and other diaspora groups—to contact their elected representatives and voice opposition to the proposed tax. If passed, the bill would move to the Senate, where its fate remains uncertain.