The Indicator from Planet Money What's a revenge tax?
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Jun 10, 2025 The conversation dives into the proposed 3.5% tax on remittances from immigrants, highlighting how it may reshape perceptions of the U.S. as a tax haven. There's an intriguing discussion around the 'revenge tax', which targets foreign investors based on their home countries' tax policies. Concerns arise over the tax's potential to deter immigration and impact businesses, while the challenges of regulating global money flows are examined. The implications for American companies and international relations add an extra layer of complexity to this financial landscape.
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U.S. As Global Tax Haven
- The U.S. has long allowed money to flow in and out freely, acting like the world's biggest tax haven.
- This policy has supported economic openness since the Reagan era but now faces potential reversals.
New 3.5% Tax on Remittances
- A new 3.5% tax on remittances aims to target money sent by immigrants abroad, especially unauthorized immigrants.
- This marks a major policy shift to discourage immigration and reduce outflows of money from the U.S.
Tax May Boost Crypto Use
- The remittance tax might drive immigrants to evade it using cash travel or cryptocurrencies.
- This could expand crypto's popularity as an unregulated channel and challenge the U.S. government's enforcement.