Episode Details
Back to EpisodesA small tax with high costs
Published 1 month ago
Description
People in the U.S. send a lot of money abroad: In 2024 alone, about $93 billion in formal remittances were sent overseas. However, a new federal remittance tax imposes a 1% levy on certain transfers. While a 1% tax may not sound substantial, it can drive up the price of sending money and hit unbanked individuals hard. We dig in. But first, the U.S. dollar has been gaining strength. Why is that happening?