Ohio is grappling with the consequences of the Biden-Harris administration's border policies, which have transformed every state into a frontline state for immigration issues. A vivid example is Springfield, Ohio, where the influx of 15,000 Haitian migrants has put a strain on local resources, including Medicaid and food assistance programs, and led to increased rent prices. This has also contributed to the rise in unlicensed drivers who struggle to interpret English traffic signs. The state is now home to an estimated 143,000 illegal immigrants, a reality that continues to be downplayed by some political quarters.
With the federal administration showing a lack of proactive measures, Ohio's legislative body is urged to tackle the financial and public safety challenges posed by the surge of illegal residents. A pragmatic approach being suggested is levying a fee on international anonymous wire transfers, a common tool used by drug and human traffickers. This financial penalty aims to hit illegal operations financially, making it less cost-effective for criminals to operate within Ohio. Representative Scott Wiggam of Ohio has already introduced a bill proposing this fee.
The legislation is crafted in a way that avoids impact on day-to-day transactions such as Venmo or traditional bank transfers, instead targeting cash transfers through businesses that bypass identity verification. Under this policy, legal residents can reclaim the transaction fee through tax refunds, thereby shifting the financial burden onto illegal immigrants and criminal activities. The additional revenues thus generated would enhance law enforcement activities against drug and human trafficking, both of which have surged under current federal policies.
Ohio, in 2023, recorded over 3,500 deaths from fentanyl poisoning, with most illegal drugs smuggled by Mexican cartels. These cartels then repatriate their profits through such wire transfers. Curtailing this flow of transactions could significantly undermine the cartels' economic strength. Concurrently, human trafficking has burgeoned into a significant issue, with estimates suggesting 500,000 victims nationwide, and close to 7,000 cases within Ohio itself. Many victims, including unaccompanied minors, fall prey to trafficking networks exploiting the U.S. border’s security gaps.
The proposed wire fee can disrupt these network operations by making it harder to sustain their financial channels. The revenue from this initiative would be earmarked for bolstering local law enforcement and community services tackling the burdens of illegal immigration and trafficking—without imposing additional tax burdens on lawful Ohio residents. Notably, Oklahoma has set a precedent for this approach with a 1% fee on transfers, generating $13 million annually. Ohio, given its larger illegal population, could potentially raise $140 million annually under a 7% fee, as suggested in the proposed bill.
These funds would be strategically directed towards mitigating the effects of illegal immigration, drug smuggling, and human trafficking. At a national level, Ohio Senator J.D. Vance has pushed for a related federal bill proposing a 10% fee on such transfers, alongside stricter penalties for avoidance and restrictions on countries aiding in this evasion. This initiative, though pivotal, should not delay Ohio's actions to safeguard its residents. Taking action to curb the financial underpinnings of illegal acts is imperative.
A fee on anonymous international wire transfers represents a feasible measure that can protect citizens while holding offenders accountable. Ohio has an opportunity to set a model for other states struggling with similar issues. Dave Yost serves as Ohio's Attorney General and Ashley Hayek is the Executive Director of America First Works. Their insights highlight a pressing need for state-level solutions amid federal policy gaps. This content has been articulated to foster understanding and encourage discourse on the proposed measures for addressing Ohio’s migrant crisis.
