Keeping emotions aside,
i think such schemes are better for us in the long-run.
Well yes.
Common-sense dictates that India would WANT this proposal to be passed in the US.
India should WANT such laws to be passed by the US
as it promotes any potentially productive (income generating) indian populace
to avoid migrating to the US, and instead hopefully be productive within the country itself. (of course, requires infra/opportunities to be created within the country,
without which emigration will simply shift from going to US to going to other countries.)
Am not sure why this effects students.
When is an Indian student performing significant outward remittances from the US ? (and if it s not a significant amount, not much to worry about then.
5% of an insignificant amount is again insignificant, right?)
1.Like China , now Americans are trying to stop " capital flight", and are worrying about the decline of Dollar dominance ,
2. Its bad for Indian Families , who are dependent on, Money sent by their Family member working in USA
3. Over the period of time , the capital control by the Americans will do a very good job of self reliance , for example , presently negative impact of FII selling in Indian Stock market has reduced thanks to Indian retailers Money flow in to the Indian stock market , and also remember the good old days " P-Note " Ban , when Government stopped " P-Note ’ FII resorted selling in Stock market , ultimately no option , Indian Economy Improved after 2014 and FII’s returned back , market started scaling new high , same way going forward , this Capital flight control by the Americans is good for the Indian Economy.
There is a difference between the proposed tax levy on remittances, by the US, and the TCS levied by India.
The TCS levied by India is tax deductible/refundable, unlike the proposed excise tax by the US.
The excise tax being an indirect tax, is nothing but an additional expense to legal immigrants, which will not get adjusted against their tax liability or be refunded.
So, this proposed move, will not only affect the NRIs, but will, to some extent affect our current account balance, as inward remittances form a major chunk of it.
Trump and common sense are poles apart.
PS:
Something i remembered on the topic of inward remittances.
Capital controls in the US would be a seismic shift, and while it might tighten remittance flows in the short term, I agree it could push more self-reliance in emerging economies like India. Retail investors stepping up lately shows how domestic capital can stabilize markets
well of course , things are changing for India ,be it Tariff war or recent Indian military Triumph of Operation Sindoor , every thing is slowly coming in favor of India . Long back i watched a video by an American Billionaire , here i would like to share the link, thing is American condition is becoming like one explained in that video
