Overview
Title
To impose a fee on certain remittance transfers to fund border security.
ELI5 AI
H.R. 6817 is a plan where people in the United States would pay an extra 10% when sending money to family in other countries, and this money would be used to protect the borders by hiring more guards and building walls. People who don't follow the rules could get in big trouble, like paying a lot of money or even going to jail.
Summary AI
H.R. 6817 proposes imposing a 10% fee on remittance transfers sent from the United States to other countries to fund border security. The collected fees will be transferred to a newly established Border Enforcement Trust Fund, which will finance the hiring and training of U.S. Border Patrol agents, construction of border barriers, and maintenance of detention facilities for undocumented individuals. The bill also provides a refundable tax credit to U.S. citizens to offset the remittance transfer fees they pay and establishes penalties for those attempting to avoid the fees. Additionally, the bill requires an annual report detailing the total amount of remittances sent to each foreign country.
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AnalysisAI
General Summary of the Bill
The proposed legislation, H.R. 6817, seeks to introduce a new financial measure aimed at funding border security by imposing a fee on remittance transfers going out of the United States. Specifically, this measure amends the existing Electronic Fund Transfer Act to incorporate a 10% fee on such transfers. Additionally, the bill proposes the creation of a Border Enforcement Trust Fund within the U.S. Treasury to collect these fees and allocate the proceeds towards border security initiatives. Notably, U.S. citizens are eligible for a tax credit equivalent to the fees they pay under this arrangement.
Summary of Significant Issues
Several significant issues arise from the provisions of this bill:
Impact on Individuals Sending Remittances: A 10% fee on remittance transfers might disproportionately impact individuals who rely heavily on sending money to family members or dependents abroad. This is particularly concerning for low-income individuals who may already face financial constraints.
Severe Penalties: The penalties prescribed for evading the fee are quite severe, including fines up to $500,000 and imprisonment for up to 20 years. Such harsh penalties may be viewed as excessive and could potentially discourage compliance.
Arbitrary Enforcement: The provision allowing high-level secretaries to determine a country's ineligibility for U.S. assistance based on their actions regarding the fee lacks clear, objective criteria, which might result in arbitrary decision-making.
Lack of Oversight and Accountability: The new Trust Fund established for border enforcement activities lacks specified oversight mechanisms, which raises concerns about potential inefficiencies and misallocation of resources.
Complex Tax Considerations: Introducing a refundable tax credit may complicate tax filings for U.S. citizens, especially without clear guidelines on how these credits are to be claimed.
Impact on the Public and Specific Stakeholders
Broad Public Impact
For the general public, the bill could have indirect impacts related to cross-border financial practices and border policy. Individuals sending remittances might see a higher personal financial burden, which could lead to decreased financial inflows to dependent recipients abroad, affecting their livelihoods.
Specific Stakeholders
Individuals Sending Remittances: The 10% fee could significantly impact their financial well-being. Those frequently sending money abroad to support their families may find themselves spending considerably more annually due to this policy.
Low-Income Households: Affected more severely due to their reliance on financial transfers, these households may have to reconsider their budget allocations and financial support networks.
Immigration and Border Security Agents: On a positive note, the proposed fund could enhance resources for these personnel, potentially leading to improved working conditions and more robust border enforcement capabilities.
Taxpayers: U.S. citizens might face additional complexities when filing taxes due to the introduction of the new tax credit, necessitating clearer communication from tax authorities on how to properly claim these credits.
Conclusion
The introduction of H.R. 6817 highlights the ongoing legislative focus on tightening border security funding mechanisms. While the bill aims to bolster national borders financially, it presents challenging trade-offs for individuals involved in cross-border financial transactions. The legislative proposal could benefit from refinements that ensure fair enforcement, appropriate levels of oversight, and consideration of the socio-economic impact on those most affected by fee impositions. Addressing these issues could lead to a more balanced and effective policy that supports border security objectives without disproportionately burdening individuals reliant on international remittances.
Financial Assessment
The proposed bill, H.R. 6817, outlines several financial mechanisms with significant implications, particularly in the realm of remittance transfers and border security funding. Here is a closer look at the financial components of this legislation and how they relate to some identified issues.
Remittance Transfer Fee
A central feature of the bill is the imposition of a 10% fee on remittance transfers sent from the United States to recipients abroad. This fee aims to generate revenue for funding border security initiatives. The bill's structure directly impacts individuals, especially those of lower income, who frequently send financial support to relatives or acquaintances in other countries. The burden of such a fee might disproportionately affect these individuals, as their contributions home become more costly.
Penalties for Evasion
To enforce compliance, the bill outlines severe penalties for those attempting to bypass the fee. Penalties include fines up to the greater of $500,000 or twice the value of the funds involved and potential imprisonment for up to 20 years. Such stringent enforcement measures may be seen as excessive when compared to the financial scale of typical remittance transactions, raising concern about proportionality and fairness.
Border Enforcement Trust Fund
The fees collected from remittance transfers will be deposited into a newly established Border Enforcement Trust Fund. This fund is earmarked for several purposes: hiring and training U.S. Border Patrol agents, constructing and maintaining border barriers, and funding detention facilities for undocumented immigrants. This allocation of funds demonstrates a clear focus on enhancing border enforcement capabilities. However, the bill lacks explicit oversight mechanisms to ensure these funds are used effectively, leaving room for questions regarding efficiency and accountability in resource allocation.
Refundable Tax Credit
The bill provides for a refundable tax credit for U.S. citizens to offset the remittance transfer fees they incur. While this provision aims to alleviate the financial impact on citizens, it does not specify caps or limits on the credit amount, potentially leading to significant reductions in tax revenue if the claims become extensive. Furthermore, this proposal could complicate the tax filing process for many citizens, requiring additional documentation and calculations to claim the credit successfully.
Implications for Foreign Assistance and Visa Waivers
A controversial aspect of the bill is its provision allowing the Secretaries of Homeland Security, Treasury, and State to determine whether a country that aids individuals in avoiding these fees should be excluded from receiving U.S. foreign assistance or participating in the visa waiver program. The financial implications of such exclusions could be significant for affected countries, but the criteria for these determinations are not clearly defined, leading to potential arbitrariness in their application.
In summary, while H.R. 6817 proposes a clear plan for funding border security through remittance transfer fees, it introduces several financial challenges and potential inequities. The severe penalties, potential administrative burdens, and lack of detailed oversight mechanisms could have broad implications, both domestically and internationally.
Issues
The remittance transfer fee of 10% may disproportionately affect individuals who rely on sending money to family members abroad, especially low-income individuals. This issue is related to Section 1, which amends the Electronic Fund Transfer Act to include this fee.
The penalty for evading the remittance transfer fee is severe, with fines up to $500,000 and imprisonment up to 20 years, which may be considered excessive. This is specified in Section 1 of the bill.
The provision allowing the Secretaries to determine a country's ineligibility for U.S. foreign assistance or the visa waiver program for aiding or harboring individuals conspiring to avoid the fee lacks clear criteria and could be seen as arbitrary. This is part of Section 1.
The allocation of funds in the Border Enforcement Trust Fund primarily targets border enforcement activities without specifying any oversight mechanism to ensure efficiency and accountability, as noted in Section 2.
The section provides a tax credit for remittance transfer fees but does not specify any limits or caps on the amount, potentially leading to excessive claims and reduced tax revenue. This is covered in Section 36C.
There is no mention of auditing or review processes to ensure that expenditures from the Border Enforcement Trust Fund are used effectively and appropriately, related to Section 3344.
The refundable tax credit for remittance transfer fees may complicate the tax filing process for U.S. citizens, as mentioned in sections related to the tax credit provisions.
The process and criteria for the development and implementation of the remittance transfer fee submission system by the Secretary of the Treasury in consultation with the Bureau and providers is not clearly outlined, potentially leading to delays or inefficiencies, as outlined in Section 1.
The language ʻconsistent with appropriation Actsʼ in Section 3344 is vague and might lead to differing interpretations of what is authorized to be spent from the Trust Fund.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Remittance transfer fee Read Opens in new tab
Summary AI
The section amends the Electronic Fund Transfer Act to introduce a 10% fee on remittance transfers sent outside the U.S. and establishes penalties for those evading this fee. It also allows U.S. citizens to receive a tax credit for these fees and requires an annual report on remittance amounts to different countries.
Money References
- “(1) IN GENERAL.—If the designated recipient of a remittance transfer is located outside of the United States, a remittance transfer provider shall collect from the sender of such remittance transfer a remittance transfer fee equal to 10 percent of the United States dollar amount to be transferred.
- “(3) PENALTIES.— “(A) IN GENERAL.—Whoever, with the intent to evade a remittance transfer fee to be collected in accordance with this subsection, and who has knowledge that, at the time of such remittance transfer, the value of the funds involved in the transfer will be further transferred to a recipient located outside of the United States, requests or facilitates such remittance transfer to a recipient located outside of the United States— “(i) shall be subject to a penalty of not more than the greater of— “(I) $500,000; or “(II) twice the value of the funds involved in such remittance transfer; “(ii) imprisonment for not more than 20 years; or “(iii) both penalties set forth in clauses (i) and (ii). “(B) AIDING OR HARBORING AN INDIVIDUAL CONSPIRING TO AVOID THE FEE.—Any foreign country that, in the joint determination of the Secretary of Homeland Security, the Secretary of the Treasury, and the Secretary of State, aids or harbors an individual conspiring to avoid the fee collected in accordance with this subsection shall be ineligible, in the discretion of the Secretaries described in this subparagraph— “(i) to receive United States foreign assistance; or “(ii) to participate in the visa waiver program under section 217 of the Immigration and Nationality Act (8 U.S.C. 1187) or any other immigration program.”; and (3) in subsection (h)(2), as redesignated— (A) in subparagraph (A), by striking “and” at the end; (B) in subparagraph (B), by inserting “and” at the end; and (C) by adding at the end the following: “(C) for purposes of applying the fee required under subsection (g)(1), does not include payments for valuable consideration.”. (b) Refundable income tax credit allowed to citizens of the United States for remittance transfer fees.
36C. Remittance transfer fees of United States citizens Read Opens in new tab
Summary AI
In this section, it states that U.S. citizens can receive a tax credit for the amount they spend on remittance transfer fees during the year, as specified under a particular part of the Electronic Fund Transfer Act.
2. Border Enforcement Trust Fund Read Opens in new tab
Summary AI
The section establishes the Border Enforcement Trust Fund within the U.S. Treasury, requiring money from remittance transfer fees to be deposited into it. Funds can be used to hire and train border patrol and immigration enforcement staff, and to build or maintain border barriers and detention facilities.
3344. Border Enforcement Trust Fund. Read Opens in new tab
Summary AI
The Border Enforcement Trust Fund section describes the creation of a special account to collect fees from money transfers and use those funds to support border security. The funds can be used to hire and train additional border and immigration officers, build or improve border walls, and maintain facilities for people living in the U.S. without legal immigration status.