US Congress considers new tax on outsourcing
The US is thinking about a new law that would make it much pricier for companies to hire people from outside the country.
Bernie Moreno just introduced the HIRE Act, which would add a 25% tax on payments to foreign persons for services benefiting US consumers.
The goal is to cut down on outsourcing, keep more jobs in the US, and use the extra tax money to support programs for American workers.
New law would also mean companies can't write off these costs
If passed, this law would also mean companies can't write off these outsourcing costs on their taxes anymore.
Plus, international students working in the US under OPT (Optional Practical Training) could see their earnings taxed too—something that's not happening right now.
All this new tax revenue would go into a Domestic Workforce Fund to help pay for apprenticeships and job training for Americans.
If approved, these changes would start with payments made after December 31, 2025.