HIRE Act
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Progress
Where this bill stands in the legislative process.
- Introduced
- Passed Senate
- Passed House
- To President
- Became Law
Overview
The Halting International Relocation of Employment Act, or HIRE Act, imposes a 25% excise tax on payments made by U.S. taxpayers to foreign entities for services provided to U.S. consumers. This tax aims to address outsourcing practices. Additionally, the bill establishes a Domestic Workforce Fund, which will be funded by revenues generated from this tax, and used to support workforce development and retraining programs, particularly in communities affected by outsourcing. Finally, the bill modifies tax rules to prevent deductions for outsourcing payments.
Key provisions
- Imposes a 25% excise tax on ‘outsourcing payments’ made to foreign persons for services benefiting U.S. consumers.
- Defines ‘outsourcing payment’ as a premium, fee, royalty, service charge, or other payment to a foreign person for labor or services directed to U.S. consumers.
- Creates a Domestic Workforce Fund funded by revenues from the outsourcing tax.
- The Domestic Workforce Fund will be used for workforce development, retraining, and apprenticeship programs.
- Requires reporting of outsourcing payments by U.S. taxpayers.
- Increases penalties for failure to pay the outsourcing tax.
- Prohibits deductions for outsourcing payments.
- Establishes a framework to prevent tax avoidance related to outsourcing payments.
Who is affected
- United States taxpayers
- Foreign persons (companies and individuals)
Bill text
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Sponsors
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1 on record
Primary sponsor
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