Trump's "Big Beautiful Bill" could tax expats 3.5% - International Living

[Trump]

I've just discovered this post from yesterday from another expat. Terrible!

In the video, Ted Bauman, Chief of International Diversification at International Living, explains a new U.S. legislative provision that would impose a 3.5% excise tax on money transfers from U.S. financial institutions to foreign accounts, potentially affecting non-citizens and possibly complicating transactions for U.S. citizens living abroad. He warns that financial institutions may preemptively apply this tax to all international transfers to protect themselves, forcing customers to claim refunds later. Bauman criticizes this vague and burdensome law as another example of U.S. policies that disadvantage expats and foreign workers.

Sometimes I hate myself!

 

[oil rush]

This is a big negative. Check around 8:00 the guy gives a few pointers and suggions on what you might want to do like making large amounts of money transfers NOW before the law goes into effect to skip that tax and having lots of different alternatives to send money around.

 

[Pink Panther]

I wouldn't worry. It has NOT passed yet. It is going through the Senate and I don't think it will pass. Trump said it will pass by July 4. Let's see.

 

[sophos]

Is Western Union considered a USA financial institution for these purposes?

 

[Finance Prof]

Is Western Union considered a USA financial institution for these purposes?

Yes. They are based in Denver where their Headquarters is located and it trades on the USA stock exchange so yes it would qualify.

 

[Albany]

The reigning champ of self-sabotage: the United States of Bureaucramerica.

Ah yes, the land of the free—unless, of course, you dare to live somewhere else. Then it turns into the clingiest ex in history: “Oh, you’re moving abroad? That’s cute. Here’s a stack of paperwork, some mystery penalties, and oh, a lovely little $2,000 breakup fee if you want out. XOXO, Uncle Sam.”

And now? A brand-new genius move: let’s try to squeeze immigrants for a few more bucks by targeting remittances they send to their families. Because nothing says “compassion” like taxing love and groceries sent home. Naturally, this brilliant plan is so well thought-out, it’ll also hit American citizens abroad. Again.

It’s almost like the government’s motto is: “Nobody leaves the plantation. Not without a toll, a confession, and maybe a blood sample.”

And look—while the empire crumbles like a stale cookie, it’s comforting to know that Milei is over there in Argentina, fanboying the U.S. with every breath. Like a groupie at a farewell tour for a washed-up band. Sad, really. The history books are already shaking their heads.

 

[crypto]

An easy workaround for any proposed remittance tax:

Use crypto. Specifically, stablecoins.

Here’s how it works: you purchase, say, $500 worth of USDT on a U.S.-based crypto exchange like Coinbase or Gemini using your bank account or debit card. You then transfer the USDT to your wallet on another platform that supports local currency conversions — for example, Binance Argentina. Once there, you convert the stablecoins to ARS, withdraw the pesos to your local bank account, and carry on with your day.

Yes, you’ll lose a few bucks on the exchange rate or network (“gas”) fees depending on whether you’re using Ethereum, Tron, or another chain. But even then, it’s marginal — and more than worth it to sidestep an inefficient or punitive tax policy.

It’s not exactly rocket science. It’s the same playbook used to route money into countries like Russia or Iran, where sanctions try to slam the door, but crypto leaves the window open.

So much for the grandstanding about a “big, beautiful” remittance crackdown. Yet another example of lawmakers fighting 21st-century tech with 20th-century tools.

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[PhilipDT]

The problem is how you can safely buy cryptos? Most major US banks will likely close your bank account once they detects transactions goes to cryptos. Maybe I'm wrong, but few years ago it happened to few friends I know. Any good suggestion or work arounds? Can't believe the damages Trump has already done so far. He is worse than Biden if that is possible.

 

[Man on the Moon]

As with many overreaching regulatory measures, there are often straightforward—and entirely legal—workarounds. Here are several practical methods to acquire cryptocurrency while minimizing friction, particularly for those in the U.S.:

1. Using PayPal (Carefully):
   
   You can purchase crypto through a centralized exchange such as Coinbase or Gemini by linking a PayPal debit card or, where supported, your PayPal account directly. Funds can be transferred from your U.S. bank to PayPal with ease, as banks generally don’t restrict such movements.
   
   

   Important: Avoid purchasing crypto directly on PayPal’s own platform. PayPal’s in-app crypto offering is custodial, restrictive, and unsuitable for serious use. Also, never keep large balances in your PayPal account, as they are notorious for freezing funds with little recourse.

2. Crypto ATMs (Use Sparingly):
   
   Physical crypto ATMs are widely available and allow direct purchase of Bitcoin and other assets. However, these machines typically charge excessive fees, making them a poor choice unless other methods are unavailable.
3. Peer-to-Peer Platforms (Advanced Option):
   
   Sites like Paxful or LocalBitcoins allow you to buy crypto from other individuals using alternative payment methods (e.g. PayPal, gift cards). While functional, these platforms require greater caution—only transact with well-reviewed sellers to reduce risk. Think of it as the eBay of crypto trading: reputation is everything.
4. Debit Card Purchases Through Banks:
   
   Many U.S. banks allow crypto purchases via debit card on major exchanges. If you’ve had issues, it may be worth switching to a more crypto-friendly institution. In many cases, smaller regional banks or credit unions are more accommodating than large national banks.

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[Betsy Ross]

Wow this would bite. Trump seems like he fell off the deep end. Getting us involved in wars he said he would not. Going nuts on import taxes. Prices are going parabolic. He wants to turn the USA into Argentina.

 

[nikad]

Terrible terrible! Banks and governments around the world keep trying to control things. If the US Senate passes this, capital controls are all but certain. It is difficult to believe the USA is trying so many failed policies that turned Argentina into a loser. 3.5% is a high fee, much higher than a cueva! And I bet they keep increasing this % fee.

This is an ugly trend. In the EU they are even trying to ban cash!

 

[earlyretirement]

I've just discovered this post from yesterday from another expat. Terrible!

In the video, Ted Bauman, Chief of International Diversification at International Living, explains a new U.S. legislative provision that would impose a 3.5% excise tax on money transfers from U.S. financial institutions to foreign accounts, potentially affecting non-citizens and possibly complicating transactions for U.S. citizens living abroad. He warns that financial institutions may preemptively apply this tax to all international transfers to protect themselves, forcing customers to claim refunds later. Bauman criticizes this vague and burdensome law as another example of U.S. policies that disadvantage expats and foreign workers.

Sometimes I hate myself!

I have posted many times how Trump is a huge disappointment. I couldn't in good conscience have voted for Harris/Biden but Trump is on a level of stupidity that matches them. Just a terrible President this time around. He is trying to turn the USA into Argentina.

Terrible terrible! Banks and governments around the world keep trying to control things. If the US Senate passes this, capital controls are all but certain. It is difficult to believe the USA is trying so many failed policies that turned Argentina into a loser. 3.5% is a high fee, much higher than a cueva! And I bet they keep increasing this % fee.

This is an ugly trend. In the EU they are even trying to ban cash!

Correct on the cash from the EU ban but more and more places in the USA are banning cash as well now. This was from breakfast yesterday in Los Angeles.

 

[Darksider415]

I have posted many times how Trump is a huge disappointment. I couldn't in good conscience have voted for Harris/Biden but Trump is on a level of stupidity that matches them. Just a terrible President this time around. He is trying to turn the USA into Argentina.

This time last year when my local friends were asking if I supported Trump, I told them that I couldn't because I didn't want to see Peronismo take root in the US, and I tried explaining that Trump is, at his core, a Peronist.

Now we're seeing it play out live.

 

[Che Vos]

This time last year when my local friends were asking if I supported Trump, I told them that I couldn't because I didn't want to see Peronismo take root in the US, and I tried explaining that Trump is, at his core, a Peronist.

Now we're seeing it play out live.

Wow! And you all make fun of us and call us Socialist! That one guy that got banned finally call us communists and look at Trump! 🤣

 

[lemonade]

This time last year when my local friends were asking if I supported Trump, I told them that I couldn't because I didn't want to see Peronismo take root in the US, and I tried explaining that Trump is, at his core, a Peronist.

Now we're seeing it play out live.

You were smart. I voted for Trump. I know some of this he said he would do but I thought some of it was just a bluff. But he said he wouldn't get us in any wars. Lies. American is turning into Argentina. It doesn't work!

 

[Larry]

This time last year when my local friends were asking if I supported Trump, I told them that I couldn't because I didn't want to see Peronismo take root in the US, and I tried explaining that Trump is, at his core, a Peronist.

Now we're seeing it play out live.

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How did you know? Just by what Trump was saying @Darksider415? Didn't part of you think it was just talk? How do your family and friends in America say now about him?

It seems crazy that Milei and Trump are so different but I guess Trump agree with what Kirchners did so many years. See, even proof Kirchner's were right! Now Trump want to follow Argentina. We need Cristina back in office!

 

[Darksider415]

How did you know? Just by what Trump was saying @Darksider415? Didn't part of you think it was just talk? How do your family and friends in America say now about him?

A mix of what he was saying and what he tried in his first round as president.

I figured the tariffs weren't done yet, and he's always been a bit of an isolationist, so it didn't take much to put two and two together.

 

[Che Vos]

A mix of what he was saying and what he tried in his first round as president.

I figured the tariffs weren't done yet, and he's always been a bit of an isolationist, so it didn't take much to put two and two together.

He sound like amazing President if he try to do what our great past Presidents have done. Life was much better with Cristina vs. Milei. Only inflation is better but all the things 5 x the price!

 

[VINO]

This time last year when my local friends were asking if I supported Trump, I told them that I couldn't because I didn't want to see Peronismo take root in the US, and I tried explaining that Trump is, at his core, a Peronist.

Now we're seeing it play out live.

View attachment 9377

It seems like Trump is just going to cause things to skyrocket up more expensive. Elon wasn't successful. The USA isn't cutting spending. It's all going up!