By Bharat Global Time Desk | May 20, 2025
There’s growing tension in households across India — from Kerala to Punjab, from Bihar to Andhra — as word spreads that Donald Trump is once again threatening to tax money sent by immigrants in the US back to their home countries, including India.
For millions of Indian families, these overseas remittances are not luxury — they are a lifeline. And Trump’s revived idea of imposing a tax on these transfers has sparked real fear and frustration.
“If My Son Sends ₹50,000, Will I Still Get the Full Amount?”
This is the question echoing in homes from Delhi’s middle-class colonies to the remote towns of Jharkhand. Many parents and families depend on monthly support from sons, daughters, brothers, or spouses working in the US.
“My son is in New Jersey, working day and night so he can send money home. If Trump taxes that too, what are we supposed to do?” asked Suman Tiwari, a retired school teacher in Varanasi. “The cost of everything is going up — we can’t afford to lose even ₹1,000.”
What Exactly Is Trump Proposing?
While he’s not in power right now, Trump is actively campaigning for a return to the White House in 2025 — and one of his recycled ideas is to place a 5–10% tax on remittances to certain countries. The reasoning? He claims it’ll discourage illegal immigration and bring in revenue for the US government.
But Indian-Americans and economists alike are calling it unfair, anti-immigrant, and economically foolish — especially for communities like ours that have strong cultural and financial ties with India.
NRI Community Not Taking It Lightly
In cities like San Jose, Houston, and Chicago — where the Indian diaspora is huge — this proposal has struck a nerve.
“We already pay US taxes, follow all rules, and now they want to punish us for helping our families? That’s heartless,” said Priya Menon, a data analyst in Seattle. Like many NRIs, she sends money back every month to support her parents and fund her niece’s education.
Indian-American advocacy groups are gearing up to oppose this move politically and legally, warning that it discriminates against hardworking immigrant families.
Why It Matters for India
India receives more in remittances than any other country in the world — over $100 billion every year. A significant part of that comes from the Indian diaspora in the US.
That money isn’t just being saved in banks — it’s funding children’s education, home construction, small businesses, and medical expenses. If a tax like this becomes law, it could shake the financial stability of thousands of Indian families overnight.
So, What Now?
Right now, it’s just a proposal. Nothing has been passed into law. But the fact that it’s even being considered again is reason enough for families to start thinking ahead.
Experts advise NRIs to keep an eye on developments, consult financial advisors, and explore safer or alternate remittance options if needed.
India Reacts with Mixed Emotions
For many Indians, the idea feels both unfair and ungrateful. “We send our brightest minds to the US, and this is how they’re repaid?” said a Bengaluru-based professor. “It’s not just about money. It’s about dignity.”
As election season heats up in the US, Indian families will be watching closely — because what happens in Washington could deeply affect lives in Hyderabad, Patna, Kochi, and beyond.
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