Bill · S. 2002· Senate(119-S-2002)
REMIT Act
- Introduced
- 6/10/2025
- Last activity
- 6/10/2025 — Read twice and referred to the Committee on Finance.
- Sponsored by
- Eric Schmitt
- Cosponsors
- None
- Introduced
- In Committee
What this bill would do
The REMIT Act proposes to amend the Internal Revenue Code of 1986 to establish a 15 percent excise tax on remittance transfers. This tax is to be paid by the sender of the transfer. Remittance transfer providers are responsible for collecting the tax and remitting it to the Secretary. However, the tax may not apply if the sender is a verified United States citizen or national using a qualified provider. The bill also establishes a refundable income tax credit for citizens and nationals to recover taxes paid under these provisions. These changes are intended to take effect for transfers and taxable years after December 31, 2025.
Yes
Would white Americans be better off under this?+2
Verified US citizens/nationals can avoid the tax through qualified providers.
The opposite· 3 of 5
Would immigrants be better off under this?-6
The tax likely reduces the amount of funds received by families of immigrants abroad.
Would households on low incomes be better off under this?-5
The excise tax could disproportionately burden low-income households sending money abroad.
Would Hispanic Americans be better off under this?-5
The tax targets remittance transfers which are frequently used by these communities.
Who it would affect, and how
Potential Positive Impacts for People
-
Tax Relief for Citizens and Nationals: An individual may receive a refundable income tax credit against their tax for any amount paid under the new excise tax, provided they meet specific documentation requirements (Section 36C(a)).
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Exemption from Tax for Verified Senders: The 15 percent tax does not apply to remittance transfers if the sender is a verified United States citizen or national and the provider is a qualified remittance transfer provider (Section 4475(c)(1)).
Potential Negative Impacts for People
-
Financial Burden of Excise Tax: Senders of remittance transfers are required to pay a tax equal to 15 percent of the amount of the transfer (Section 4475(a)).
-
Compliance Requirements for Tax Credits: To receive the refundable credit, individuals must demonstrate that the tax was paid and include their social security number, as well as their spouse's social security number if married (Section 36C(b)).
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Increased Responsibility for Providers: Remittance transfer providers are required to collect the tax and may face secondary liability to pay the tax if it is not collected at the time of the transfer (Section 4475(b)(2) and (3)).
Groups and Interests Ranking
Every group the model scored this bill for, from -10 to +10. Hover a score for the reason it gave.
- Demographic And Interest Groups
- Good For White Americans+2Good For Immigrants-6Good For Hispanic Americans-5Good For Low Income Households-5Good For Business Owners-3Good For Middle Class Households-2
- 6/10/2025
- Read twice and referred to the Committee on Finance.
- Introduced in Senate
2 bills Congress.gov lists as related to this one — companions in the other chamber, earlier versions, and bills this one absorbed or was folded into.