May 17, 2017
On behalf of our member companies, many of which engage in the facilitation of remittance transfers, we write to express our concern with H.R. 1813, the Border Wall Funding Act of 2017. This legislation, which would subject remittance transfers from the U.S. to certain countries to a 2% user fee, is an ill- advised consumer tax on a legal and heavily regulated financial product used by millions of Americans.
As a matter of principle, taxes on consumer financial products and services are bad policy, no matter what the stated goal. The consumer tax in H.R. 1813 would increase the cost of remittance transfers, driving consumers out of regulated financial services and forcing these money flows underground.