To avoid illegal immigrants and folks who go into hiding when their visas to stay in the United States expire, President Donald Trump and his administration are planning to impose a remittance tax. The tax would track the liquid assets moving out of the country and would require additional charges on international transactions. However, many believe that in retaliation, low-paid outsiders could start using Bitcoin instead of fiat currencies, which would potentially turn out to be suitable for the crypto industry as a whole.
Having the existence of cryptocurrencies such as Ripple’s XRP which offers a refine substitute with lightning speed and severely low fees than that of the traditional process of transporting money across countries, the move (if taken) by the Trump Administration could trigger the adoption of the cryptocurrencies to increase into another level.
The Administration, since it came into power, has mentioned their concerns on different occasions about the outsiders from its neighboring countries such as Mexico and Latin America, coming to work in the country which results in worrisome issues (lack of economic opportunities and employment) for the citizens of the US.
To put their inflow into the hold, the Administration feels that if they are taxed substantially on remittance they send back to their family, then there wouldn’t be any reason for them to come to the country for work. To say the least, that’s the philosophy behind such a tax proposal.
Although, no specifics have been given yet by the government about the proposed tax, talk in the town is that the plan will follow through according to the proposal submitted by Kris Kobach, the former state secretary of Kansas.
In an interview with Breitbart news network last week, the former secretary spoke how his proposal would help the US economy as well as would help them to track those large number of immigrants harboring in the country illegally.
“The threat [to illegal immigrants] I propose is one that actually helps [the U.S.] if we follow through on it. That is the threat of ending remittances from the majority of people in the United States from Mexico who are here illegally”
“That is a threat that we could carry through on that actually helps our economy because the money is not sent home, it stays in circulation in the U.S. economy and helps rev up our economy. It’s actually a good thing if we follow through.”
White House spokesperson Hogan Gidley gave a glimpse about the ongoing situation about the remittance tax by saying that it is Administration’s top priority at the moment as they perceive it to be a potentially lethal approach to de-incentivize immigration.
“It is a top priority for the administration, as has been for two years, to reduce overstay rates for visas and the visa waiver program — and it’s well known that the administration is working to ensure faithful implementation of immigration welfare rules to protect American taxpayers.”
If we look at the data accumulated at Coin Dance, a digital analytics firm, since this proposal came into consideration by the administration, the trading volume of Bitcoin across digital exchanges has significantly increased with Mexico and few South Americans countries being biggest contributors, which are the origin of immigrants for the US.
Image courtesy of Pixabay.
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