What's in Trump's big, beautiful bill?

 

 

GOP Tax Bill: No tax on tips & overtime, higher tax on elite colleges, 5% tax on immigrant remittances – Key takeaways

 

New tax on immigrant remittances

The bill would impose a 5% tax on remittances sent abroad, a measure aimed at curbing money transfers to foreign countries. US citizens could apply for credits to offset the cost, but the tax will hit immigrant households hardest.

 

https://www.livemint.com/news/us-news/gop-tax-bill-no-tax-on-tips-overtime-hefty-tax-on-elite-colleges-new-5-tax-on-immigrant-remittances-key-take-11747086670936.html

 

"Apply for credits" appears to mean would have to claim a credit on your 1040, to be applied against tax owed.

No owe tax, no get remittance tax refund?

 

And somewhere in the text it eliminates IRS direct file, so no more free online filing?

 

But it's all good.  The debt ceiling will be raised by $4 Trillion.

1 hour ago, NoDisplayName said:

No owe tax, no get remittance tax refund?

 

 

Possibly. But more likely, receive a refund (a check) from IRS. 

9 minutes ago, Equatorial said:

 

Possibly. But more likely, receive a refund (a check) from IRS. 

I thought Trump was getting rid of the IRS.  Hard to get information on this. How the Hell are they going to fund the government?  I don't think tariffs are going to do the job. Is Orange Jesus trying to cause another Great Depression?

9 minutes ago, Equatorial said:

 

Possibly. But more likely, receive a refund (a check) from IRS. 

 

Why would a direct refund be more likely?

 

I suspect this will be more like the tax credit for foreign taxes paid that may be used ONLY if you have tax due.

 

This is targeted at evil, stinky immigrants with the purpose being to prevent/reduce remittances to home countries.

 

Expect an executive order banning WISE and other transfer agents, unless the tax is deducted at transfer.

1 minute ago, Felton Jarvis said:

I thought Trump was getting rid of the IRS.  Hard to get information on this. How the Hell are they going to fund the government?  I don't think tariffs are going to do the job. Is Orange Jesus trying to cause another Great Depression?

 

Trump just surrendered to Xi, lowering the tax on American consumers to "only" 30%.

 

What's the tax on gifted 747's?

22 minutes ago, NoDisplayName said:

Why would a direct refund be more likely?

 

 

If the idea is to "offset the cost." It will most likely be treated as overpayment of tax due, i.e. refunded. 

25 minutes ago, NoDisplayName said:

This is targeted at evil, stinky immigrants with the purpose being to prevent/reduce remittances to home countries.

 

No need to demonize the immigrants!

 

Otherwise, correct, both to curb the immigrants' remittances, and to tax them (as a source of revenue). 

2 minutes ago, Equatorial said:

 

No need to demonize the immigrants!

 

Otherwise, correct, both to curb the immigrants' remittances, and to tax them (as a source of revenue). 

 

These are allegedly employed immigrants, sending their already-taxed income back to their families.  They've supposedly already paid their fair share.

 

If the point is to increase revenue, they won't make it easy to get the credit.  If they can limit it to a maximum of tax due, they keep the surplus, unless carried over to the following year.

59 minutes ago, NoDisplayName said:

They've supposedly already paid their fair share.

 

It is common to tax behaviors that the state wants to discourage. All of us who already paid out fair share pay additional taxes when we buy cigarettes and whiskey. 

3 hours ago, NoDisplayName said:

"Apply for credits" appears to mean would have to claim a credit on your 1040, to be applied against tax owed.

No owe tax, no get remittance tax refund?

 

 

"Tax credits" seem to work oddly in IRS terminology. The Earned Income Tax Credit, for example, is not a credit against taxes you pay but actually a cash amount the government flat out gives you. Maybe that is the way they will do it, here. File return, claim US citizen remittance tax credit, and have the IRS issue it to your bank account.

5 hours ago, ThreeCardMonte said:

“Trump just surrendered to Xi”

 

Get your facts straight.

 

 

 

A right-wing View session by the mouthpiece of the Trump regime?

 

I put them just below China Observer in terms of credibility here.

5 hours ago, John Drake said:

 

"Tax credits" seem to work oddly in IRS terminology. The Earned Income Tax Credit, for example, is not a credit against taxes you pay but actually a cash amount the government flat out gives you. Maybe that is the way they will do it, here. File return, claim US citizen remittance tax credit, and have the IRS issue it to your bank account.

 

Yes, 'refundable' tax credits that can reduce your tax bill below zero resulting in a refund.

 

I doubt this tax will fall in that category.

5 hours ago, Equatorial said:

 

It is common to tax behaviors that the state wants to discourage. All of us who already paid out fair share pay additional taxes when we buy cigarettes and whiskey. 

 

Unrelated.

 

We buy things in later transactions incurring sales tax.

The targets of this tax just want to keep their cash.

That's just petty.

9 hours ago, NoDisplayName said:

And somewhere in the text it eliminates IRS direct file, so no more free online filing?

 

There are several non-governmental providers of free online tax filing.  I use OLT for three years now.

This might not affect anyone who is transfering from their US account to an overseas account.  It could also depend on the IRS definition of Remittance:  1) Transfering money to another person 2) Transfering money to another country 3) Transfering money to another country to yourself 4) Transfering money to another country and to another person.   I might have to call my CPA when I am back in So Cal.

 

Also, has the $10,000 mandatory reporting rule been changed.  Many immigrants use money transfer places (Westen Union or other versions fo the same) and often the amounts are way under 10K.