A proposed law in the United States called the One Big Beautiful Bill Act (OBBBA) may soon impose a 3.5% tax on money sent abroad by non-US citizens. A move that could hit Overseas Filipino Workers (OFWs) and their families hard.
The bill, recently passed by the US House of Representatives, is a sweeping package of conservative economic and immigration policies. One of its provisions aims to help fund the country’s $70-billion border security program by taxing remittances sent by migrants, including legal workers who are not US citizens. If the bill becomes law, a Filipino worker in the US sending $500 home would pay around $17.50 in remittance tax, on top of standard service fees.
The US is the largest single source of remittances to the Philippines, accounting for over 40% of total inflows. In 2023 alone, Filipino workers abroad sent home more than $37 billion, fueling household consumption, supporting the peso, and boosting economic growth. Experts warn that the remittance tax could: Reduce inflows as OFWs send less money, or shift to informal channels. Weaken the peso and affect import prices. Strain household budgets, especially in rural provinces, leading to greater inequality in OFW-dependent regions
Supporters of the bill argue that non-citizens benefit from the US economy and should help shoulder national security costs. Critics say the measure unfairly targets migrant workers and could damage diplomatic ties with countries like the Philippines. The Philippine government has not yet issued a formal response, but analysts expect it to closely monitor the bill as it heads to the US Senate for deliberation. | via Dann Miranda | Photo via White House Website
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