By Safe Investment September 10, 2025
US HIRE Bill: The purpose of this bill is to prevent American companies from outsourcing services. This will force American companies to hire American companies instead of foreign people. This will increase employment opportunities for American people. The dependence of American companies on foreign employees will decrease.
A new bill introduced in the US Parliament earlier this month is being discussed the most in India. The reason for this is that the $250 billion Indian IT industry is being targeted by this bill. This bill will have a direct impact on big Indian IT companies like TCS, Infosys, Wipro, HCL Tech. Thanks to these companies, the Indian IT industry has been dominating the world for more than two decades. These companies have played a major role in the export of services from India. On the other hand, Indian IT companies have played a major role in making the lives of millions of middle class people in India happy. If this new bill of America is implemented, then it will be a big blow to the Indian IT industry.
A 25% tax on any money U.S. companies spend on outsourcing services.
No tax deductions for outsourcing expenses—making it even more expensive.
All that tax money goes into a Domestic Workforce Fund, meant to train and support American workers
This bill aims to stop US companies from outsourcing
More than half of the revenue of Indian IT companies comes from America. On the implementation of the Halting International Relocation of Employment (HIRE) bill, a big penalty will be imposed on those American companies that outsource such services, that is, get them done from foreign companies, which are used in America. Actually, the purpose of this bill is to stop American companies from outsourcing services. This will force American companies to hire American companies instead of foreign ones. This will increase employment opportunities for American people. The dependence of American companies on foreign employees will decrease.
There are three measures in the Hire Bill to stop outsourcing
The US Hire Bill includes three major measures to stop American companies from outsourcing. First, the American company doing outsourcing will have to pay 25 percent tax on the money spent on outsourcing. Second, American companies will not be able to deduct the expenditure on outsourcing from their taxable income. The effect of this will be that the cost of outsourcing will increase. Third, the money that comes from the 25 percent tax on outsourcing will be deposited in the Domestic Workforce Fund (DWF). This money will be used to increase the capacity of the American workforce.
American companies accused of outsourcing for their own benefit
Republican MP Bernie Moreno, who introduced the Hire Bill in the upper house of the US Parliament, said, "American graduates have to struggle to get a job, while big American companies have been hiring out work abroad for decades by paying good salaries. They make huge profits by getting work done for less money. Now its days are over." He also said that now the time has come to fight for the people working in America. We have to ensure that the American people have jobs and they can retire with dignity.
This bill needs to be passed by both houses of the US Parliament
This bill has just been presented in the Senate. Since this bill proposes to impose a new tax, it needs to be passed by both houses of the US Parliament. After being passed in the House of Representatives and the Senate, it will go to US President Donald Trump for signature. After Trump's signature, this law will come into force. It is worth noting that this bill has been presented in the Senate at a time when the pressure on the relations between America and India has increased a lot. Trump's imposition of 50 percent tariff on India has soured the relations between the two countries.
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