I wanted to pass along a new piece from Cato Institute Policy Analyst Nicholas Anthony on financial surveillance.

In the piece, Anthony discusses Section 112105 of the “Big Beautiful Bill” just passed by the House which would set a 5 percent tax on money sent abroad.

At first glance, this tax might seem like a routine revenue measure. After all, what does taxing remittances have to do with financial privacy? The link becomes clearer when you consider how the tax would be implemented—and who it targets, Anthony says:

Individuals can avoid the tax if they (1) prove they are US citizens or nationals and (2) use a government-approved service provider to send the funds. That means, in effect, the bill would create a two-tiered system where anyone who wants to avoid the tax must surrender personal information and go through state-sanctioned channels. This setup would not just collect revenue—it would function as a data collection tool. In doing so, the bill would create a system for flagging and identifying financial transactions.

If you would like to speak with Anthony on this issue, please contact pr@​cato.​org to set up an interview.