Recently, Sen. Bernie Moreno (R-OH) introduced a bill that could subject some U.S. businesses to a new tax. The Halting International Relocation of Employment (HIRE) Act would impose a 25% tax on outsourcing payments. The bill defines “outsourcing payments” as amounts paid to foreign persons for labor and services performed outside the United States that benefit U.S. customers. The HIRE Act would also prevent companies from deducting outsourcing payments for federal tax purposes. But the viability of the bill is uncertain. Moreno isn’t a member of the Senate’s tax-writing committee, nor did he work with other senators when crafting the bill. So stay tuned.
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