An online post from Indian National Congress General Secretary Jairam Ramesh, combined with new business analysis in India, is spotlighting how Sen. Bernie Moreno’s Halting International Relocation of Employment Act could significantly affect India’s technology-services economy if enacted.
On October 6, Senator Bernie Moreno of Ohio introduced the Halting International Relocation of Employment Act — the “HIRE Act” — and the bill “has been referred to the Senate Committee on Finance.” Jairam Ramesh, Member of Parliament and General Secretary (Communications) of the Indian National Congress, posted on X on Monday: “The Bill proposes a 25% tax on any US person making an outsourcing payment – defined as ‘any money paid by a US company or taxpayer to a foreign person whose work benefits consumers in the United States.’”
Ramesh wrote that the measure “has a direct and deep impact on India’s IT services, BPO, consulting and GCCs (global capability centres).” He added that “other countries like Ireland, Israel, and Philippines too will be impacted but the maximum effect will be on India’s exports of services which has been a marked success story over the past quarter of a century.”
Ramesh indicated that the bill “may or may not pass. It may get modified. It may just linger,” but argued that “one thing is clear – the Bill reflects a growing mindset in the US that while blue-collar jobs were “lost” to China, white-collar jobs should not be “lost to India.” Nobody expected a year ago that the India-US economic relationship will take so many knocks – of which the HIRE Bill is another reflection.” He concluded: “If ever HIRE becomes a reality it will light a fire in the Indian economy which may have to face a new normal in relation to the US.”
The bill text also creates a “Domestic Workforce Fund” to receive the revenue stream generated by the excise tax and specifies that “no deduction shall be allowed … for any outsourcing payment.”
Moreno, in his press release, framed the legislation as an effort to “protect American workers from outsourcing by disincentivizing U.S. companies from chasing cheaper wages and hiring foreign workers.” The release stated that the legislation “will impose a tax on any company that employs foreign labor instead of Americans and will use the generated revenue to fund workforce development programs to help the middle-class.”
Moreno asserted, “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.” His office noted that “if companies want to hire foreign workers instead of Americans, my bill will hit them where it hurts: their pocketbooks.”
Business Standard explained said skilled Indian professionals “already grappling with the newly imposed $100,000 H-1B visa fees may soon face another setback” and detailed that former Reserve Bank of India Governor Raghuram Rajan remarked, “What we’re seeing is a creeping extension of tariffs from goods to services. This is a threat.” Business Standard added that “Trump’s political base has been vocal about reducing dependence on foreign labour, particularly Indian tech workers.”
Business Standard detailed Indian sector exposure, noting U.S. business is the biggest revenue source for India’s major IT companies, and listed potential consequences: “Reduced demand for outsourced jobs,” “Tighter visa environment,” and “Impact on India’s IT exports.” Rajan added that the HIRE Act is “much more important for us” than the H-1B fee hike.
Moreno’s new outsourcing tax proposal arrives immediately after his separate SAFE HIRE Act gained major labor union backing. As Breitbart News previously reported in September 25: “Teamsters President Sean M. O’Brien is throwing his support behind a plan from Sen. Bernie Moreno (R-OH) that would hugely increase penalties for company executives who hire illegal aliens for American jobs, including prison sentences.”
In that earlier immigration enforcement proposal, Moreno “introduced the SAFE HIRE Act to require companies to certify that their workforce is legal and impose penalties of up to $1 million and 10 years imprisonment if they lie on such reports” and “penalties of up to $5 million and 20 years imprisonment on company executives who hire illegal aliens.”
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