The financial services world is battling back against a new tax on international money transfers in the House-passed reconciliation bill.
Key Senate Republicans say they’re weighing concerns with the tax, but it’s got steadfast backers who would love to go even higher. Combine that with the GOP’s need for revenue raisers and the industry — fintech in particular — has a tough fight on its hands.
The House package institutes a 3.5% remittance tax. U.S. citizens are exempt as long as they send money through verified providers. Republicans have been proposing this sort of tax to crack down on illegal immigration and fund border security. The tax is a red-meat conservative priority.
