U.S. companies మీద 25% outsourcing tax వేయండి అంటున్న Bernie Moreno

[andhra_jp]

WASHINGTON –Today, Senator Bernie Moreno (R-Ohio) introduced the Halting International Relocation of Employment Act, or HIRE Act, to protect American workers from outsourcing by disincentivizing U.S. companies from chasing cheaper wages and hiring foreign workers. The legislation will impose a tax on any company that employs foreign labor instead of Americans and will use the generated revenue to fund workforce development programs to help the middle-class.

“While college grads in America struggle to find work, globalist politicians and C-Suite executives have spent decades shipping good-paying jobs overseas in pursuit of slave wages and immense profits – those days are over,” said Moreno. “It’s time to fight for working class Americans and ensure they can work and retire with dignity. If companies want to hire foreign workers instead of Americans, my bill will hit them where it hurts: their pocketbooks.”

The HIRE Act:

• Creates a 25% tax on outsourcing payments, defined as any money paid by a U.S. company or taxpayer to a foreign person whose work benefits consumers in the United States. 
• Creates a “Domestic Workforce Fund” to collect any money raised from the outsourcing tax, which is used to support apprenticeships and workforce development programs. 
• Prohibits companies from deducting any outsourcing payments.

https://www.moreno.senate.gov/wp-content/uploads/2025/09/The-HIRE-Act.pdf

https://www.moreno.senate.gov/press-releases/new-moreno-bill-would-crack-down-on-outsourcing-fund-american-workers/

[andhra_jp]

The real and present danger for Indian IT sector

India's major IT services players such as TCS, Infosys, Wipro, HCLTech and Tech Mahindra derive more than half of their revenues from US clients. Similarly, GCCs (Global Capability Centres) of Fortune 500 firms including those in finance, insurance, healthcare, retail and tech heavily rely on Indian talent to run their global operations. A 25% surcharge on these services, combined with the loss of deductibility, dramatically increases the total cost of offshoring for American firms.

There are a few potential paths forward, but none are without pain. Indian companies may try to absorb some or all of the 25% tax, compressing their already thin margins. If clients share the burden, service costs in the US will rise, potentially leading to inflationary pressure, especially in sectors like banking, customer support and even aviation, which rely on Indian offshoring for backend efficiency. US firms could create subsidiaries in India to bypass the tax, but the anti-abuse clauses in the bill suggest even these routes could be monitored or closed off.

The path for Moreno's HIRE Act is not easy

Admittedly, the bill faces a steep climb to become a law. As of now, it lacks White House support, and it's unclear whether even Trump, despite his rhetoric, will back this particular measure. Previous efforts like Sen. Lindsey Graham’s proposal for 500% tariffs on countries buying Russian oil failed to gain traction despite MAGA support. The Republicans only have narrow majorities in Congress, and any bill this controversial would require extensive bipartisan negotiation.

It's also possible that the proposed HIRE Act in its current form is just a new bargaining chip from Trump officials in US-India trade negotiations which are ongoing.

But despite all that, the fact that outsourcing tariffs are being seriously discussed is a clear signpost. The combination of political rhetoric, populist nationalism and rising anti-immigration sentiment has given oxygen to these ideas which were once dismissed as impractical or fringe. Carve-outs might be introduced for critical sectors but even then, the sword hangs over most of India’s IT services exports.

A core question lingers: Does the US even have enough skilled workers to replace offshore talent? American universities produce far fewer STEM graduates than India annually, and the domestic pipeline for mid-senior tech talent is shallow. That’s why US companies outsource in the first place, not just to save money, but to ensure continuity and scale in operations. Disrupting this ecosystem through blunt-force policy tools risks not just Indian jobs, but American business competitiveness.

The HIRE Act may not pass in its current form, but it is a serious policy signal. For Indian IT services and GCCs, the risks are no longer hypothetical. India’s overdependence on the US market leaves it vulnerable to policy shocks. If nothing else, this episode should prompt India’s IT industry to diversify its client base, invest in domestic demand, focus on innovation and prepare in all ways for a less hospitable geopolitical climate. Even if Moreno’s bill fails, the protectionist agenda is in full play and Indian IT is firmly in its crosshairs.

[akkum_bakkum]

9 minutes ago, andhra_jp said:

WASHINGTON –Today, Senator Bernie Moreno (R-Ohio) introduced the Halting International Relocation of Employment Act, or HIRE Act, to protect American workers from outsourcing by disincentivizing U.S. companies from chasing cheaper wages and hiring foreign workers. The legislation will impose a tax on any company that employs foreign labor instead of Americans and will use the generated revenue to fund workforce development programs to help the middle-class.

“While college grads in America struggle to find work, globalist politicians and C-Suite executives have spent decades shipping good-paying jobs overseas in pursuit of slave wages and immense profits – those days are over,” said Moreno. “It’s time to fight for working class Americans and ensure they can work and retire with dignity. If companies want to hire foreign workers instead of Americans, my bill will hit them where it hurts: their pocketbooks.”

The HIRE Act:

• Creates a 25% tax on outsourcing payments, defined as any money paid by a U.S. company or taxpayer to a foreign person whose work benefits consumers in the United States. 
• Creates a “Domestic Workforce Fund” to collect any money raised from the outsourcing tax, which is used to support apprenticeships and workforce development programs. 
• Prohibits companies from deducting any outsourcing payments.

https://www.moreno.senate.gov/wp-content/uploads/2025/09/The-HIRE-Act.pdf

https://www.moreno.senate.gov/press-releases/new-moreno-bill-would-crack-down-on-outsourcing-fund-american-workers/

swagathisthunnam antunna batta potta h1 vuncles.

[AndhraneedSCS]

How do they know and identify this amount?

[karna11]

Looks like vellandari ki mana loop holes anni telisinattu vunnyi

[libraguy86]

malla as is torture for h1 folks aa is

[ManOffSteel]

2 hours ago, AndhraneedSCS said:

How do they know and identify this amount?

Based on the outgoing remittances from the company. Most of the payments to foreign contractors are made through wire transfers which go through the Fed’s central system for remittances 

[AndhraneedSCS]

2 minutes ago, ManOffSteel said:

Based on the outgoing remittances from the company. Most of the payments to foreign contractors are made through wire transfers which go through the Fed’s central system for remittances 

How will they know the reason? What if, let's say, Meta uses the money they made in Europe to pay it in India? 

[Ballisticmissile]

That's not possible.... because if everyone goes this way Europe/South America and rest of the world can impose taxes on FAANG companies as they outsource their profits too. It's a zero some game. Just for India and few jobs they can't rush whole services. 

If US taxes services everyone reciprocates. Remember US has surplus with rest of the world with respect to services.

[Anta Assamey]

Vesukunte vesukondi...

[Joker_007]

question is who is going to pay the price especially in Utility, Banking, Insurance and Tourism in short Service Oriented Industry... 

[megadheera]

Very reasonable 

[summer27]

ala cheste..india kooda software products (uber, meta, visa, mastercard, microsoft etc.,) usage meeda tax or ban cheste?

[ARYA]

adi vadi korika matrame..

[Sucker]