REMITTANCE Act

The REMITTANCE Act increases the excise tax on remittance transfers from 1 percent to 25 percent, with the goal of reducing the federal deficit by directing the collected funds to the Treasury's general fund. While this higher tax applies broadly, the bill creates a specific refundable tax credit for U.S. citizens who send money for business or travel purposes, allowing them to claim back the tax paid on those specific transactions. The legislation defines remittance transfers using existing standards from the Electronic Fund Transfer Act and applies these new tax rules retroactively to the date of a previous law. Ultimately, the bill aims to discourage personal money transfers while providing financial relief to individuals sending funds for work or travel.