New 25% Tax on Foreign Outsourcing Payments to Fund Domestic Jobs.
This law introduces a new 25% excise tax on payments made by US businesses to foreign entities for services directed at US consumers, aiming to discourage job relocation abroad (outsourcing). Revenue generated from this tax will be directed into a dedicated fund solely for workforce development, job retraining, and apprenticeship programs for displaced workers. This measure increases the financial burden on companies that choose to outsource services.
Key points
US companies must pay a 25% tax on payments made to foreign persons for services provided to US consumers.
The law establishes the Domestic Workforce Fund, financed by this tax, to pay for job training and development programs across the country.
Companies are prohibited from deducting these outsourcing payments from their income tax, significantly increasing the total cost of using foreign labor.
Introduced
Citizen Poll