HIRE Act

This bill imposes a 25% federal excise tax on and disallows tax deductions related to payments made to foreign persons for labor or services benefiting consumers in the United States (outsourcing payments). The bill also provides funding for workforce development initiatives.

Specifically, the excise tax applies to outsourcing payments, which the bill defines as any premium, fee, royalty, service charge, or other payment made

in the course of a trade or business,

to a foreign person (excluding a corporation or partnership organized under the laws of the United States or a U.S. possession), and

Summary by the Congressional Research Service.