S2976119th CongressWALLET

HIRE Act

Sponsored By: Senator Sen. Moreno, Bernie [R-OH]

Introduced

Summary

A 25% excise tax on outsourcing payments would make payments from U.S. businesses to foreign providers for services that benefit U.S. consumers more expensive and channel proceeds into workers' retraining. The bill also denies tax deductions for those outsourcing payments.

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Bill Overview

Analyzed Economic Effects

2 provisions identified: 1 benefits, 1 costs, 0 mixed.

Domestic Workforce Fund for displaced workers

If enacted, the bill would create a Domestic Workforce Fund in the Treasury. The Fund would receive amounts equal to receipts from the outsourcing tax, related additions to tax, and related penalties. Money in the Fund would be available without further appropriation for Department of Labor retraining, apprenticeships and industry partnerships, and state grants for communities with high job displacement.

New outsourcing tax for U.S. businesses

If enacted, the bill would impose a 25% excise tax on payments U.S. persons make to foreign persons for labor or services that benefit U.S. consumers. It would also deny income tax deductions for those outsourcing payments. The Treasury could require reporting and officer certification about such payments. Failure to pay the outsourcing tax could face a 50% penalty. The IRS could still use the economic substance rule to challenge abusive arrangements. These rules would apply to payments made after December 31, 2025.

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Sponsors & CoSponsors

Sponsor

Sen. Moreno, Bernie [R-OH]

OH • R

Cosponsors

There are no cosponsors for this bill.

Roll Call Votes

No roll call votes available for this bill.

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