Us: Republican Proposal Seeks 5% Tax on Remittances, Impacting Honduras and Other Nations

A group of Republican congressmen in the United States has introduced a proposal to impose a 5% tax on all remittances sent from the U.S. to foreign countries. This could significantly impact economies like Honduras, which heavily relies on these funds, according to Bloomberg journalist Erik Wasson. The initiative is part of a fiscal strategy driven by former President Donald Trump and is under discussion in the Congressional tax committee. Wasson indicated that, given the Republican majority in the committee, the project could quickly advance to a vote in the legislature and then the Senate. If approved, the tax would directly affect over two million Honduran households that depend on remittances for their livelihoods. Jeff Ernst, a well-known communicator and researcher, expressed concern that the tax would pose a serious risk to the financial health of Honduras and other Central and South American countries. Ernst estimated that a 5% tax on foreign remittances could result in losses of up to $1 billion for Guatemala and $500 million for Honduras. In 2024, Honduras received over $9.743 billion in family remittances, representing about 25% of its Gross Domestic Product (GDP). The tax could reduce annual income to families from abroad by approximately $485 to $500 million. For an economy where remittances exceed exports of coffee, textiles, and seafood, this measure could worsen the already fragile economic situation of many families who depend on these resources for basic needs.