Vincentians at home are preparing for an adverse impact on their living standards should Republicans in the United States (US) House of Representatives carry out intentions to levy a five percent tax on remittances.
Based on the World Bank, St Vincent in 2023 received $91,639,353 in personal remittances from the US. These remittances comprise employee pay and transfers from migrant workers.
A 5% excise tax on remittance transfers covering more than 40 million people, including green card holders and nonimmigrant visa holders, such those on H-1B, H-2A and H-2B visas, house Republicans have included in President Donald Trump’s key priority package. Citizens of the United States would be exempt.
Trump also recently revealed that he was completing a presidential decree meant to “shut down remittances” sent by people in the U.S illegally.
“Any measure to lower remittances will have a negative impact on the U.S. national interest,” said Manuel Orozco, director of the Migration, Remittances, and Development Program at the Inter-American Dialogue. “It’s going to affect the homeland.”
“Sending less would impact the receiving homes, limit the capacity to save, and in turn may increase the intention to migrate,” said Orozco.
Over the past few years, eighteen states have introduced laws to regulate remittances – through fees on money transfers, both domestically and internationally. Voters have virtually turned down practically all of the initiatives.
Prime Minister Ralph Gonsalves in January 2025 stated that the remittances were going to continue from the United States. Gonsalves was at the time speaking about the planned deportations of illegals living in the U.S.
Most people in the United States from Saint Vincent and the Grenadines have their status. ”They are either citizens, hold a green card, or are legitimately present in the United States in one way or another.”
According to the World Bank, remittances sent to home countries in 2023 totalled about $656 billion — equivalent to the gross domestic product of Belgium.
Remittances are also a major factor in the global economy, often sent from American wire services rather than banks and credit unions.
