President Trump is struggling to get Congress to appropriate sufficient funds to build the wall he wants along our southern border. I thought Oklahoma's experience with a remittance tax might hold promise for that.
Oklahoma ... collects 1 percent from all out-going, out-of-state, person-to-person wire transfers of money; many of these transfers are remittances from illegal aliens in Oklahoma to their relatives in their homelands. It is the only state to do so.
. . .
Oklahoma tax officials told us a year or so ago that 96 percent of the wire transfer fees are not used as income tax credits — so the great bulk of the funds are additional revenues to the state, all taken from people who do not pay their state income taxes.
This should be a dream for politicians — 96 percent of this funding source is being collected from people who are tax cheats and who cannot vote.
. . .
It continues to puzzle me why state legislatures, particularly Republican-controlled ones, do not tap into this golden, if not huge, source of funds.
Similarly, why doesn't Congress adopt this procedure? It would bring in at least one to two billion a year in a tax on a non-voting population. The tax, ideally, would be imposed only in those states that do not have such a system — thus protecting Oklahoma from any revenue loss.
There's more at the link.
The author's suggestion makes an awful lot of sense to me. If so large a proportion of the remittance tax is never claimed back as a tax deduction - making it clear that most of those making such remittances are illegal aliens and/or tax cheats - then why not apply it in every state? It could also be increased from its present 1% to double or triple that. There's a source of income that might help pay for the border wall within a reasonably short space of time, without taking anything away from current taxes or expenditures.