Couldn't the Federal government tax wire transfers to slow money exodus?

[BugsyPal]

First, funds transferred out of the USA in theory already should have been taxed be it earned or unearned income. Otherwise we're talking about money laundering and that is a whole other ball of wax.

Next, depending upon the amount sent, frequency and to who (or is that whom?) wire transfers can be subject to gift taxes.


You've never seen IRS penalties like these - Apr. 1, 2015


You've never seen IRS penalties like these - Apr. 1, 2015


Taxes on a Foreign Wire Transfer - Budgeting Money


IIRC all funds transferred in amounts over $1K USD are reported to the federal government. That is unless you are using Tony Soprano's Russian money launders. *LOL*


Federal government could impose a surcharge, fee or some sort of transaction tax on wire transfers as most banks or agents already do (mine charges $15 for each incoming transfer), but that runs the risk of taxing money twice.

If I send money to someone in Paris, France, I've paid income or capital gains tax on that money (earned or unearned income), or will when file taxes. So now you want to tax me *again* on the same money?


One can see a bank or other transfer agent getting their taste, they are charging for providing a service. The federal government again already will get theirs via income taxes, so why should anyone have to kick even more upstairs?


There is the concept of a financial transaction tax, but that mostly applies to stocks, bonds, mortgages, etc... https://en.wikipedia.org/wiki/Financ...ion_tax#France

[gladhands]

You're saying that people who've already pay tax on income should pay an additional tax to give it to family members. Isn't that pretty much the opposite of everything Republicans supposedly stand for?

[Dane_in_LA]

Originally Posted by johnsonkk

With the emphasis of keeping the earned wages inside the U.S., wouldn't it make sense to put a federal tax on every wire transfer sent out of the U.S.?

There is a barrage of reports that highlight so many countries that have a significant portion of their GDP from income that is sent by those inside the U.S. If the U.S. taxes those funds, then the U.S. can help either fund other projects or lower the debt that is likely earned on those not paying income taxes. Seems like a great idea that is similar to the TSA fee that collects your money each time you take off from an airport.

Bwahaha! Stopping the 1%ers from doing off-shore bank transfers? You're a funny, funny man.

[Dane_in_LA]

Originally Posted by gladhands

You're saying that people who've already pay tax on income should pay an additional tax to give it to family members. Isn't that pretty much the opposite of everything Republicans supposedly stand for?

Clearly directed at brown people. So no.

[sholomar]

bitcoin is another alternative as are any of other cryptocurrencies.

[gladhands]

Originally Posted by Dane_in_LA

Clearly directed at brown people. So no.

And they're too stupid to realize the cutting off remittances actually incentivizes illegal. They're just so eager to do something that harms Mexicans.

[ALackOfCreativity]

I'd be fine with a small take on what is a major source of cash outflow from the country, but if you try to tax remittances too much people will just use alternative or under the table means of getting money out. So, levy a small tax and watch results to make sure even that small amount isn't driving cash flows under the table, fine. Large or pass-and-ignore tax no since it'll backfire.