Trump Threatens to Tax Payments That Power Latin American Allies

A Republican proposal to tax remittances would deliver an economic blow to some of the US’s poorest neighbors, including a close ally of President Donald Trump.

The bill, presented to the US House of Representatives last week, would levy a 5% tax on remittances for non-citizens and foreign nationals. That’s on top of a roughly 5% to 10% fee already charged on the payments by senders like Western Union Co. and MoneyGram International Inc., services migrants in the US use to send money to family members back home.