TYLER, Texas (KETK) – Congressman Nathaniel Moran (R-TX) has sponsored his first bill, the Border Security Investment Act which would place a 37% fee on remittances to the “top five nations of origin for illegal immigration.”
Remittances are monetary payments sent from one country to another. For countries like Guatemala, Honduras and Mexico, remittances make up a significant portion of their GDP. According to World Bank, in 2021 remittances made up 25.3% of Honduras’ GDP, 17.9% of Guatemala’s GDP and 4.3% of Mexico’s GDP.
A press release from Moran’s office points out that the 37% user-based transaction fee is equivalent to the current top income tax bracket.
Individuals who make over $539,900 are a part of the 37% income tax bracket, according to Forbes. The proposed remittance fee would apply to any remittance transfer made with a money service regardless of how little money an individual makes.
Moran’s proposed bill would use the 37% fee on remittances to funnel money into two trusts. One trust would fund federal border security investments into technology, physical barriers and wages for border patrol agents.
The other trust would reimburse states for their border security spending.
Moran said the following in a statement:
“The record surges in unlawful crossings at our southern border – spurred by the Biden administration’s open border policies and its refusal to simply apply the existing rule of law – is one we cannot afford to ignore. The Border Security Investment Act is narrowly tailored in its approach by seeking to target only those transactions often times used by those here illegally or those here legally who are not paying taxes, but who are enjoying the benefits of our nation’s social services.”
A press release claims the bill is fiscally responsible because it will use unspent funds taken from remittances to help eliminate the national debt. The proposed bill is supported by the Federation for American Immigration Reform, according to a press release.