Senate Bill May Increase Your Tax Prep Bill

Senate Bill 2976 would impose a 25% excise tax on foreign outsourced services and eliminate the tax deduction on those costs.

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Senate Bill S2976 titled Halting International Relocation of Employment (HIRE) Act was introduced by Senator Bernie Moreno (R-OH) recently.

The Bill would call for the following changes to the Tax Code:

• Impose a 25% excise tax on any services provided by foreign outsourcing companies that directly or indirectly benefit U.S. consumers, and

• Eliminate the deduction for payment of those services.