US Senate proposes 25% tax on outsourcing payments
A new bill in the US Senate, introduced by US Republican Senate candidate Bernie Moreno, proposes a 25% tax on payments American companies make for foreign outsourcing services.
Called the HIRE Act, it's designed to make outsourcing less attractive and keep more jobs in the US.
Companies also wouldn't be able to write off these costs on their taxes.
Potential impact on Indian IT industry
Money from this tax would go into a fund for US workforce development.
If passed, the law could seriously impact India's massive IT industry—which relies heavily on US clients—and might force some big changes in how American companies work with overseas partners.
The bill still faces tough political hurdles and strong pushback from tech firms, but it shows how serious the debate over protecting local jobs has become.