Should Congress implement a new tax on outsourced labor?
This bill would implement a 25% tax on payments made to foreign persons for labor or services that benefit U.S. consumers. This excise/indirect tax is defined as outsourcing payments, which include premiums, fees, royalties, service charges, or other payments. This bill would also forbid any federal tax deductions relating to payments made as part of the excise tax. Additionally, this bill provides funding for the Domestic Workforce Fund. This would fund workforce development and retraining programs, apprenticeships, state grants for workforce development, and other similar programs. The funding would be sourced from the new excise tax implemented by this bill.
Sponsor: Sen. Bernie Moreno (Ohio, Republican)
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Opponents say
• "The proposal is disastrous on all fronts. It imposes punitive extra layers of taxation - at least two more, reaching triple taxation - on legitimate business functions. It’s probably administratively unworkable. It will encourage companies to forgo US residence. It opens tax ideas that could ultimately be deployed against the US. But the greatest problem is simply that the vision is wrong to begin with. The US should take pride in being the world’s headquarters." Source: Alan Cole (Tax Foundation Statement)
• "For some things, this isn’t the way we make laws.” For complex legislation, committee review and work with colleagues is necessary. You have my commitment to move forward. I am with you." Source: Sen. Jacky Rosen (Nevada, Democrat) via Statement
Proponents say
• "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. 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." Source: Sen. Moreno (Ohio, Republican) via Press Release
• "Our 100% US-based employee workforce is critical to our ability to deliver personalized customer service and high-quality products and services to our customers. We applaud Senator Moreno for introducing the HIRE Act which recognizes the value of a high quality, onshored workforce." Source: Charter Communications via Press Release
