Manuel Orozco, director of the Migration, Remittances, and Development Program at the Inter-American Dialogue: “The impact of the 1 percent tax on remittances depends on different factors. The tax applies only to cash transfers. Currently, in the U.S.-Latin America outbound market, approximately 50 percent of transactions are performed in cash. However, many cash transfer senders own bank accounts and mobile financial applications, and some may opt to use a money transfer agent but use their card rather than cash to make the transfer. The impact also depends on whether remitting behavior changes. Data analysis indicates that a 1 percent increase in transaction cost may increase the use of unregulated channels by at least 5 percent. In a 2017 survey, 40 percent of migrants reported that they would use informal channels, and 25 percent indicated that they would send less. Therefore, one could expect a combination of factors to play a role in…”