The proposal includes no tax on tips and remittance tax for dollars flowing out of the country.
The House majority released their massive budgetary proposal on Monday, outlining a vast array of tax code changes in their work to fulfill President Donald Trump’s promise to change American finances in “One Big, Beautiful Bill.”
They chose to maintain the top income tax for individuals making $2.5 million or more, capping it at 37 percent instead of maintaining its scheduled increase to 39.6 percent.
The state and local tax (SALT) deduction cap may also be altered if this bill is passed, with the cap increasing to $30,000 for couples, $15,000 for individuals, and phasing out for incomes above $400,000 per couple.
Tips and overtime would become tax-exempt with this bill, and an interest deductions would be provided for auto loans.
Another significant feature would be the imposition of a 5 percent remittance tax on all funds sent out of the country. This would tax the funds that migrants send to their countries of origin, some of which goes to cartels. Cartels also launder money from the U.S. back to Mexico to support smuggling operations.
“The cash flow from illegal immigrants in the States to their cartel partners in Mexico, Venezuela, and other countries is massive,” Representative Kevin Hern of Oklahoma said. “It’s a two-fold win: remittance fees will help slow down the flow of those dollars to the cartels and will also create a new revenue source we can use to build the wall and secure our border.”
As the Lord Leads, Pray with Us…
- For members of the House as they work on tax policies and seek to reconcile the federal budget bill.
- For Speaker Mike Johnson and Majority Leader John Thune as they oversee their respective chambers of Congress.
Sources: Live Mint, Daily Wire
