Proposed Trump tax to affect Ghanaians, others in US sending money home

Proposed Trump Tax to Affect Remittance Payments from Ghanaians in the US

The US is considering a new 5% tax on remittance payments. This tax would impact immigrants, including green card holders and non-immigrant visa holders. Ghana received over $4.6 billion in remittances in 2023, mainly from the US.

The proposed tax plan has raised concerns among the diaspora. It could significantly affect countries like Ghana that rely on these funds. The Ways and Means Committee introduced this sweeping tax plan recently.

The tax will likely hit immigrants harder than US citizens. Most remittance transfers by US citizens are exempt from this tax. The bill could affect over 40 million people, including those on H-1B, H-2A, and H-2B visas.

In 2023, remittances from the US reached $93 billion globally. Ghana was one of the top recipients of these funds. The inclusion of a remittance tax may face opposition from Democrats and immigrant communities.

President Donald Trump is also finalizing a plan to stop illegal remittances. There are worries that taxing certain remittances could harm communities in Ghana. This might burden Americans and lead to increased immigration to the US.

Ghanaians living in the US face new immigration restrictions as well. Since April 11, all foreign nationals must register their legal status. They need to carry proof of their status at all times, such as Green Cards or visas.

Trump promised stricter immigration rules during his campaign. Foreign nationals present for more than 30 days had to register under the Alien Registration Act by April