Introducing the HIRE Act: A New Push to Protect American Workers from Outsourcing

Strategic Insights -

Senator Bernie Moreno (R-Ohio) has introduced a landmark legislation, the Halting International Relocation of Employment Act (HIRE Act), aimed at protecting American workers from outsourcing. The bill proposes imposing a 25% tax on U.S. companies that employ foreign labor instead of Americans, with the generated revenue used to fund workforce development programs. This move is a direct response to the increasing practice of outsourcing good-paying jobs overseas, leaving American workers to struggle.

Key Takeaways:

  • The HIRE Act imposes a 25% tax on outsourcing payments, defined as any money paid by a U.S. company or taxpayer to a foreign person whose work benefits consumers in the United States.
  • The act creates a "Domestic Workforce Fund" to collect revenue from the outsourcing tax, which is used to support apprenticeships and workforce development programs.
  • The bill prohibits companies from deducting any outsourcing payments, effectively penalizing them for choosing foreign labor over American workers.
  • Senator Bernie Moreno led the effort to implement strict penalties on executives that hire illegal immigrants.
  • The HIRE Act aims to disincentivize U.S. companies from chasing cheaper wages and hiring foreign workers, protecting American middle-class jobs.

Statistics:

  • The proposed 25% tax on outsourcing payments is a direct attempt to level the playing field for American workers.
  • The Domestic Workforce Fund is expected to generate revenue used to support workforce development programs, helping to upskill and reskill American workers.
  • The act's focus on apprenticeships and workforce development reflects the need for targeted support to help the middle-class achieve economic stability.

Sources:

  • Senator Bernie Moreno, Ohio State Legislature
  • [1] "HIRE Act Introduced to Protect American Workers from Outsourcing." (Ohio State Legislature website, exact date not mentioned)
  • "Senator Bernie Moreno Introduces Bill to Protect American Workers." (Senator's press release, without date)