They would limit the tax on cash remittances.

José Díaz Briseño / Agency Reforma News

Republicans in the U.S. Senate proposed significantly limiting the range of remittances that would be affected by the 3.5 percent tax passed by the House last May.

Republicans in the U.S. Senate proposed significantly limiting the range of remittances that would be affected by the 3.5 percent tax passed by the House last May.

It would be limited to remittances originating in cash, money orders, or cashier's checks.

Contained in the Senate draft of the massive tax and spending plan to finance President Donald Trump's priorities, Republicans on the Senate Finance Committee proposed not taxing remittances originating in U.S. bank accounts, debit cards, and credit cards.

According to experts, the decision to limit the range of remittances is significant, as more and more foreigners in the United States are sending their remittances to their countries from bank accounts in the United States, rather than necessarily using cash.

So far, the legislative process in the Senate to approve Trump's draft tax and spending plan is still in its initial stages, as it must be considered in committees and eventually voted on by the full Senate, something the White House wants to happen next week.