In a remarkable approach, Secretary Bessent announced during a Fox News interview that a regional targeting effort is now underway that will block anyone who receives public assistance from sending money overseas (remittances to foreign countries). This is not a fee or tax on the remittance, or financial transaction; this is a complete block of their ability to send money overseas. Anyone receiving public assistance will not be able to send money to foreign lands.
Yes, it seems like this is initially going to be subject to the honest admission of the money sender. However, with the IRS reviewing each transfer and cross referencing to public assistance records anyone who attempts to work around this regulation will be subject to federal laws on financial fraud, wire service fraud and potentially money laundering.
The interagency focus will eventually go nationwide, as with the new USAO position that focuses on public assistance fraud; but for now, that focused effort will target Minnesota. Minneapolis will be the beta test for a national rollout.
WINNING!! I voted for this … 3x
And let me note that Scott Bessent … a gay man … NEVER prefaces his comments by “proudly” proclaiming he is the FIRST gay Treas. Sec. and whatnot. He’s no Mayor Pete who wears his gayness as some sort of badge of competency. “Look! I’m gay! That qualifies me for something … anything!.”
I wonder if Scott Bessent would agree with me that we should NOT be graphically teaching our 11yo boys to perform oral sex on other boys in our public schools? Just curious.
“I wonder if Scott Bessent would agree with me that we should NOT be graphically teaching our 11yo boys to perform oral sex on other boys in our public schools?”
Would he be banned from CTH if he did?
Of course not, he is not a fanatical pest like some people are.
I’ve often found “hearty advocate” a good deal more tactful than “fanatical pest”. Just a suggestion.
I think a number to toss into the ring on this Somalian fraud story is that the GDP of Somalia is between $13-$14 Billion while remittances were about $1.7 Billion in 2023.
I don’t care if Somalians want to send their earnings back to their home country, buy new red convertibles if they want with their money, but I think the fraud and fallout from this scandal are going to make a major dent in that cashflow.
I can’t find any believable numbers on outward remittances from the US, but numbers published range from 68 billion to almost double that. Taxing these funds is long overdue. If the funds stayed in-country they would have far greater effect in stimulating the domestic economy, which is of course desirable. It is clearly unreasonable for funds provided to support the lifestyle of the supposed indigent and poverty-stricken to be shipped out of the country, and if that is happening then those claims of poverty are obviously false or at least over-stated.
Nice….canada next please.
Not the win that you may think it is..
When everyone is cheating the system, they will start to clamp down on everyone, this is how you get FINTRAC and other nanny state level surveillance..
Remember Justine the Wonderful stating that small businesses are just tax dodges and cheaters, etc.
The reason people are trying to dodge all the taxes is that there are too damn many of them, which indicates a problem with the government.
While I agree about not sending the government provided money out of the country, the whole taxation system in Canada needs to be overhauled, but the powers that be would never contemplate it, as they’d have to stop SPENDING so damn much and that would never happen. Also, the gov would be jealous that the people are sending more taxpayers money out of the country than THEY ARE and it makes them look bad!
The purpose of government hand outs is provide for the person using the system, not to fund clan life style choices in a foreign nation.
Been saying for years that any cash being sent out of the country should be taxed and an equal amount in total income taxes be reduced for the general tax paying population. Maybe have a carve out for vacations etc, but not just shipping money out of the country
This is a good idea too. (Of course I still think income tax should be completely abolished, none of the gov’s business how much someone earns.
Looks like they soon will be.
Remember these names. They will be making an entrance into the Fraud scenario in short order:
Mohamed Said Duale
&
Dahabshiil Money Transfer
I would also cut all foreign aid (and the remittances are arguably a subset of this).
Ukraine, fork over our $20B!!
Understand that this will have little immediate effect as Somalis don’t use Western Union or bank transfers, they use Hawala money changers to send the money home. And the Hawalas don’t report to Fintrack or the IRS.
Yesterday when this was announced, it took me less than 5 minutes to find a number of Hawalas in Minnesota, so that is where the investigations need to go.
Sgt. Fury and his Hawala Commandos?