The HIRE Act (Halting International Relocation of Employment)
Introduced in the Senate by Senator Bernie Moreno (R-OH), this is the actual outsourcing bill tied to the administration's broader crackdown on companies like Wipro. It is designed to aggressively penalize corporations that move American jobs overseas by hitting them with a 25% excise tax on outsourcing payments and eliminating standard corporate tax deductions for international labor.
Sound familiar? We need HIRE ACT
@b0 look at the tech giants and big banks who are the top companies offshoring jobs. Then look at who the biggest donors are to Trump and his family and PACs. Offshoring jobs cuts costs and increases their bottom line and makes them $$$$. You think that’s ever going away? It won’t.
That was introduced in December 2025 and hasn't progressed at all, so best of luck.
@ah The transition of contractors to USB employees was announced by senior leadership at an enterprise level months ago. It isn't a secret.
Great idea. Done!
Offshoring is much worse for short and long term. Just look at manufacturing jobs that went away and never came back. H1-B off late has been abused and needs to be dealt with too but in the context of this bank it is lower priority from a numbers point.
@a4 We have 10,000 contractors in India and the plan is to turn them all into official USBank employees.
I have heard the same from multiple sources.
@OP Under the proposed 2025 Halting International Relocation of Employment (HIRE) Act (S. 2976), U.S. companies that offshore American jobs face a punitive multi-layered financial framework. The legislation uses tax elimination, a new excise tax, and aggressive, uncapped penalties to make foreign outsourcing economically unviable.
The specific taxes and penalties outlined in the bill include:
• The Tax: A flat 25% federal excise tax is levied on the gross value of all "outsourcing payments".
• What Counts as a Payment: It broadly applies to any premium, fee, royalty, or service charge paid to a foreign entity or foreign worker for labor or operations that ultimately benefit U.S. consumers (such as offshore IT support, customer call centers, or back-office processing).
• No Mixed Deductions: If a service covers both U.S. and international consumers, the tax is mathematically prorated to target the U.S. portion.
• The Penalty: Ordinarily, labor and vendor costs are standard, deductible business expenses. The HIRE Act completely denies federal income tax deductions for both the outsourcing payments themselves and the 25% excise tax.
• The Result: This creates a severe "triple taxation" effect. Companies are taxed on the revenue used to pay foreign workers, taxed an extra 25% on the transfer itself, and forced to pay standard corporate income tax on those non-deductible amounts. Tax experts calculate this pushes the effective tax rate on offshored services close to 46%.
To prevent companies from hiding foreign labor costs, the bill implements a highly aggressive penalty structure for failing to report or pay the tax:
• 50% Monthly Uncapped Penalty: Standard failure-to-pay penalties under the IRS typically max out at a cumulative 25%. The HIRE Act dramatically escalates this penalty to 50% per month, with no cap.
• Corporate Certification: Corporate officers are required to formally report "outsourced income" on their tax returns, introducing potential personal and legal liabilities for corporate fraud if hidden.
Where the Penalty Money Goes
All revenue collected from the 25% excise tax and its monthly noncompliance penalties is legally sequestered into a newly formed Domestic Workforce Fund. Administered by the Department of Labor, these funds are directly allocated toward American middle-class apprenticeship programs, worker reskilling, and direct grants to local communities hardest hit by corporate offshoring.
@OP
The Proposed Bill: Halting International Relocation of Employment (HIRE) Act (S.2976)
Introduced in October 2025 by Senator Bernie Moreno (R-OH) in the 119th Congress, this bill is focused on protecting domestic jobs from offshoring.
• Core Purpose: To heavily disincentivize U.S. corporations from chasing cheaper labor markets and offshoring jobs abroad.
• Key Provisions:
• 25% Excise Tax: Imposes a steep 25% federal excise tax on any "outsourcing payments" made by U.S. companies to foreign entities for labor or services that ultimately benefit U.S. consumers.
• Elimination of Deductions: Disallows companies from claiming standard corporate income tax deductions on those foreign outsourcing expenses.
• Domestic Workforce Fund: Allocates all revenue generated from the excise tax and its strict 50% monthly noncompliance penalties into a dedicated trust fund to support American apprenticeships, workforce retraining, and job placement programs.
Tax and penalties clarified in separate reply
This sheet is already happening at other major corporations. Now that they cannot get cheap labor here they are sending it over there. I have said it before, executives that have the ability to affect 1000s of American lives need to be held accountable for their actions.
I am tired of hearing about h1 b visa because they make a small percentage of of workforce.
The problem is offshoring. We have 10,000 contractors in India and the plan is to turn them all into official USBank employees.
This bank has already publicly stated expectations of at least 20, 000 USbank employees in GCC India.
So 30 percent of our jobs have and will be offshored to India.
These politicians need to focus on offshoring and not the tiny amount of of h1 b visa.
Also tired of hearing about manufacturing jobs being sent overseas , when more white collars jobs like Tech and Banking and Medical records, etc are all being offshored