A proposed US tax on foreign remittances threatens to destabilise a key pillar of India’s economic resilience: its steady and substantial flow of foreign income from its global diaspora. At stake is not just billions in lost remittances, but also broader implications for currency stability, household consumption, and global capital flows.Part of a sweeping legislative initiative titled “The One Big Beautiful Bill”, introduced in the US House of Representatives on May 12, the proposal seeks to levy a 5% tax on money transfers made by non-US citizens—including green card holders and visa workers.
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