Latest news with #MoneyGram
Yahoo
4 days ago
- Business
- Yahoo
Consumer Weakness Starting to Hit Travel, MoneyGram CEO Warns
The CEO of the international money transfer firm MoneyGram says the consumer is starting to feel stressed, especially when it comes to travel spending. Bloomberg's Sonali Basak caught up with Anthony Soohoo, the CEO of the company at the Goldman Sachs Leveraged Finance Conference in California. They talked about the impact of tariffs and when MoneyGram might go public again. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Bloomberg
5 days ago
- Business
- Bloomberg
Consumer Weakness Starting to Hit Travel, MoneyGram CEO Warns
The CEO of the international money transfer firm MoneyGram says the consumer is starting to feel stressed, especially when it comes to travel spending. Bloomberg's Sonali Basak caught up with Anthony Soohoo, the CEO of the company at the Goldman Sachs Leveraged Finance Conference in California. They talked about the impact of tariffs and when MoneyGram might go public again. (Source: Bloomberg)
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Business Standard
22-05-2025
- Business
- Business Standard
Trump's One Big, Beautiful Bill: Immigrants face cuts, new remittance tax
A sweeping tax and spending Bill backed by US President Donald Trump is on the verge of passage, after a key House committee cleared the way for a vote within hours on Thursday. The Bill, formally titled the One Big, Beautiful Bill Act, combines tax cuts with strict immigration-related provisions. Trump had earlier warned fellow Republicans that failing to pass it would amount to the 'ultimate betrayal'. Tighter rules on tax credits and remittances One of the headline changes affects the child tax credit, which will rise to $2,500 through 2028. But the benefit will now only be available to children whose parents have Social Security numbers, excluding many undocumented families, even if their children are US citizens. Another provision imposes a 5% tax on money transfers sent abroad by non-citizens—including green card holders and those on visas. The rule is set to take effect from July 4, 2025. 'For example, if you send $1,160—or around ₹100,000—to your parents in India, you may have to pay ₹5,000 more in tax,' said Rajarshi Dasgupta, executive director – tax. 'That money will be collected by the remittance provider—be it Western Union, MoneyGram or a bank—and passed on to the US government every quarter,' he told Business Standard. Healthcare and welfare limitations Access to Medicaid and the Affordable Care Act will be further restricted for undocumented immigrants and certain legal residents, including those on temporary work permits or with refugee status. The Bill also brings forward work requirements for Medicaid recipients, a move that could affect immigrants in low-income jobs. The White House defended the restrictions, saying the Bill 'protects Medicaid' by 'ending benefits for at least 1.4 million illegal immigrants'. Billions set aside for immigration enforcement The Bill allocates $12 billion for new border enforcement measures, including more physical barriers, an expansion of detention capacity, and the hiring of additional immigration and customs officers. A conservative immigration group, the Immigration Accountability Project, praised the funding increase. 'The One Big Beautiful Bill Act, which the House is about to vote on, will provide a critical investment in interior immigration enforcement and border security,' the group said on X (formerly Twitter). 'It funds 10,000 additional Immigration and Customs Enforcement officers, 100,000 additional detention beds, and more prosecutors and immigration judges. It also provides sufficient resources to Customs and Border Protection to build the wall and keep our borders secure. 'The One Big Beautiful Bill will be a game changer for the men and women of ICE and CBP who work every day to keep our nation safe.' According to the group, $150 billion has been earmarked for immigration enforcement and border protection efforts. They also welcomed recent changes to the Bill that limit access to benefits like SNAP, Obamacare, and Medicaid for undocumented migrants. Tax cuts for the rich, losses for the poor An early review by the Congressional Budget Office suggests the Bill's benefits will fall unevenly across income groups. 'In general, resources would decrease for households in the lowest decile (tenth) of the income distribution, whereas resources would increase for households in the highest decile,' the agency said. Martha Gimbel, executive director and co-founder of the Yale Budget Lab, said the Bill benefits wealthier Americans at the expense of those relying on public support. 'It doesn't really matter if people at the bottom are getting relatively small tax cuts if they're losing their health care, they're losing their SNAP benefits and they're having to pay more money in tariffs,' Gimbel told USA Today.
Bloomberg
20-05-2025
- Business
- Bloomberg
Remittance Tax Plan Poses Threat to US Allies in Central America
By and Kelsey Butler Save A Republican proposal to tax remittances would deliver an economic blow to some of the US's poorest neighbors, including a close ally of President Donald Trump. The bill, presented to the US House of Representatives last week, would levy a 5% tax on remittances for non-citizens and foreign nationals. That's on top of a roughly 5% to 10% fee already charged on the payments by senders like Western Union Co. and MoneyGram International Inc., services migrants in the US use to send money to family members back home.
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Business Standard
16-05-2025
- Business
- Business Standard
NRIs in US may soon have to pay ₹5,000 tax on every ₹1 lakh sent to India
If you're an NRI living in the United States and regularly send money home to India, a proposed new tax could soon make those transfers more expensive. The Republican-backed draft legislation, referred to as the 'Big Beautiful Bill', introduces a 5 per cent levy on all overseas remittances made by non-citizens. If passed, the rule could take effect from July 4, 2025, making you liable to pay an extra fee every time you send money abroad—from family support and education to healthcare and investments. 'For example, if you send $1,160—or around ₹100,000—to your parents in India, you may have to pay ₹5,000 more in tax,' said Rajarshi Dasgupta, executive director – tax. 'That money will be collected by the remittance provider—be it Western Union, MoneyGram or a bank—and passed on to the US government every quarter," he told Business Standard. Who will have to pay the tax You will be affected if you: Hold a visa such as H-1B, F-1, or J-1 Have a green card Are undocumented Use a remittance provider that is not formally approved by the US Treasury The only people exempt are verified US citizens or nationals, and only if they use a 'qualified' provider—one that has an official arrangement with the government to confirm your citizenship status. If you're a citizen but still get taxed by mistake, you'll need a valid Social Security Number (SSN) to claim it back later when you file your returns. Hardik Mehta, managing committee member, BCAS (Bombay Chartered Accountants' Society), said, 'The proposed development on excise tax on remittances outside the US can be seen as a replica of Indian TCS provisions on LRS remittances.' However, he pointed out that the mechanics of the levy require careful reading. 'While the tax is to be paid by the remitter, the bill also talks about giving credit of the said tax on the basis of SSN in the US. In that case it would function akin to the concept of advance tax payment,' Mehta said. India expected to feel the biggest impact India, which received $125 billion in remittances in 2023, is the world's largest recipient of money from overseas. According to official figures, nearly 28 per cent of this came from the United States. 'With billions in annual remittances and a large share from US-based NRIs, this friction could significantly reduce inflows, impacting foreign exchange reserves and potentially accelerating currency depreciation,' Dasgupta said. According to India's Ministry of External Affairs, around 4.5 million Indians live in the US—including about 3.2 million persons of Indian origin. Many send money regularly to support parents, cover education and medical expenses, or invest in property in cities like Mumbai, Hyderabad and Kochi. Dinkar Sharma, company secretary and partner at Jotwani Associates, told Business Standard, 'On paper, this might look like a small surcharge, but in practice, it marks a severe disruption to the trust, intention, and flow of transnational financial support.' What could change for you * You'll pay 5% more each time you send money abroad * You may have fewer choices of remittance providers, especially if they're not 'qualified' * If you're a US citizen, you'll need to check whether your provider is approved—or risk paying and claiming a refund later * If you're planning large transfers, you may want to do them before July 2025 'From the NRI perspective, if you're working in the US and planning to return to India eventually, you're effectively earning 5% less on every dollar sent home,' said Dasgupta. 'Remittance habits will need to be restructured, and large or planned transfers should ideally be completed before July.' He added that careful documentation of transactions will become even more important—not just for tax filings, but also to avoid legal and financial complications later. How families in India could be affected For families in smaller cities or rural areas that rely on this money, the new tax could hit hard. 'For families in tier-II and tier-III cities in India that depend on such remittances to cover basic expenses, this is not a trivial reduction—it could mean the difference between continuing education or dropping out, affording medicines or deferring treatment, paying rent or defaulting on EMIs,' said Sharma. He warned of a broader ripple effect, particularly in sectors like real estate, banking and consumer goods, which are often fuelled by NRI spending. 'Remittances are not speculative capital flows—they are deeply personal acts of economic solidarity that sustain intergenerational aspirations,' Sharma said. Why experts call the tax unfair Critics have called the tax regressive, saying it punishes migrants for supporting their families. 'Unlike capital gains or income tax, this levy is applied on post-tax earnings—money that has already been subjected to federal and state taxation in the US,' said Sharma. 'There's no service being offered by the government in exchange. It is, in essence, a pure extractive measure that penalises people for helping their families or investing in their homeland.' Democrats in Congress have raised objections, saying the Bill could disproportionately harm immigrant communities and low-income families who depend on remittances. Sharma added, 'The economic rationale is thin; the political overtones are loud. Remittances are not just economic transactions, they are acts of care and responsibility across borders. Taxing them sends the wrong message—not just to immigrants, but to the world.'
