‘America is Not the World’s Piggy Bank’: Sen. Eric Schmitt Calls for Quadrupling Remittance Tax to 15 Percent

Sen. Eric Schmitt (R-MO) said Sunday that Congress should quadruple the tax on remittances, saying the United States is not the “world’s piggy bank.”

“The House’s Big Beautiful Bill addressed the urgent need for a remittance tax. But we can go further. I’m introducing legislation to quadruple the proposed remittance tax — from 3.5% to 15%. America is not the world’s piggy bank. And we don’t take kindly to threats,” Schmitt said in a statement on X.

“As I’ve said many times before: America isn’t an economic zone. It isn’t an airport with a shopping mall attached. It’s our country. It’s our people. It’s our home,” he added.

Sen. Mike Lee (R-UT) wrote in response to reports of the Mexican president complaining about taxing remittances to Mexico, “Support for the 3.5% “remittance tax” just got a lot stronger, and I suspect the rate could end up increasing tenfold.”

The House-passed Big Beautiful Bill would institute a five-percent tax on remittances from illegal aliens to individuals outside the United States.

The provision would also provide a refundable tax credit for any excise taxes paid by taxpayers with valid Social Security numbers.

In January 2025, Nicaragua received $373.5 million in remittances. A World Bank report found that remittances amounted to 27 percent of Nicaragua’s Gross Domestic Product (GDP) in 2024.

“We should take fees on the remittances sent there and other countries around the world when people come to our country illegally and wire money back home. We should tax those remittances, take that money and use it to pay for the wall, to pay for ICE agents, to pay for Border Patrol,” Rep. Chip Roy (R-TX) said in a speech on the House Floor in November.