Halting International Relocation of Employment Act; HIRE Act
Summary
The Halting International Relocation of Employment Act (HIRE Act) aims to discourage outsourcing by imposing a 25% excise tax on payments made by U.S. taxpayers to foreign persons for services directed towards U.S. consumers. The bill amends the Internal Revenue Code of 1986 to include this tax and establishes a Domestic Workforce Fund. This fund will be supported by the collected excise taxes and used for workforce development and retraining programs.
Expected Effects
The HIRE Act is likely to increase the cost of outsourcing for U.S. companies. This could lead to a reduction in outsourcing activities and potentially encourage companies to keep or bring jobs back to the United States. The establishment of the Domestic Workforce Fund could provide resources for training and support for American workers.
Potential Benefits
- May incentivize companies to retain or create jobs within the U.S.
- Could provide funding for workforce development and retraining programs.
- May lead to increased domestic investment.
- Could improve the U.S. balance of trade by reducing payments to foreign entities.
- Potentially strengthens the domestic labor market.
Most Benefited Areas:
Potential Disadvantages
- Could increase costs for U.S. consumers if companies pass on the excise tax.
- May reduce the competitiveness of U.S. companies that rely on outsourcing.
- Could lead to retaliatory measures from other countries.
- Potential for companies to find loopholes to avoid the tax.
- May disproportionately affect certain industries that heavily rely on outsourcing.
Most Disadvantaged Areas:
Constitutional Alignment
The HIRE Act appears to align with the Constitution, specifically the power granted to Congress in Article I, Section 8 to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States. The establishment of the Domestic Workforce Fund also aligns with the general welfare clause, as it aims to support and improve the workforce. The bill does not appear to infringe on any specific individual rights or liberties protected by the Constitution or its amendments.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).