Halting International Relocation of Employment Act or "HIRE Act" has potential to add a 25% surcharge on outsourced labor. Companies also can no longer deduct those payments for a tax advantage. The Act has to pass but could signal massive changes for companies like Elevance.
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We don’t outsource everything-we own the companies..not considered outsourcing
Except they aren't. Today most of these are set up as foreign subsidiaries and paid through payroll.
Under the the proposed hire act this would not trigger the tax. Only payments to foreign persons trigger it.
This is wishful thinking. K Street will not let this happen. Our country has been outsourced and given away.
Elegance has wiggled around much of this by buying the companies overseas. Thus, not considered outsourcing.
Moreno legislation is focused on discouraging U.S. businesses from sending jobs abroad, rather than targeting the H-1B program, which is used for temporary foreign workers employed within the United States.
Krishnamoorthi's legislation is focused on bringing more H1-B to the USA. Recently Microsoft has filed for over 14,000 H‑1B visa applications while laying off 9,000 employees. Cheap labor will replace us, it’s just a matter of whether the government gets to collect taxes when they do.
@ap krishnamoorthi's 2023 HIRE act ( H.R. 4647, the High-Skilled Immigration Reform for Employment) is completely different than moreno's "Halting International Relocation of Employment Act (2025)"
@bj Looks like this references a different proposal called the High Skilled Immigration Reform for Employment Act- also referred to as the HIRE Act, that was introduced back in 2023. The version of the HIRE Act mentioned by OP stands for Halting International Relocation of Employment and was introduced this week. https://www.moreno.senate.gov/press-releases/new-moreno-bill-would-crack-down-on-outsourcing-fund-american-workers/
@bm good points.
Even if this does work as intended, this law, what is to say it would save Elevance?
We would still have the same bad decision makers in charge of the company, continuing to make mistakes.
An act of congress won't save this company. The shareholders finding a way for EH to get its act together is really the only thing that will fix it.
Sounds great to the average superficial news consumer. In reality, it will make offshore labor only about 5X cheaper than American labor, rather than 6X cheaper. Bump up the surcharge from 25% to 500% and it might mean something.
https://krishnamoorthi.house.gov/media/press-releases/congressman-krishnamoorthi-introduces-hire-act-increase-us-economic
@OP This bill mirrors legislation previously enacted under the Obama administration albeit under a different name. It’s no surprise to see such a lack of innovation from these people.
@ap not sure where you are getting your information but this is inaccurate, at least based on what @OP has originally posted. Ohio Republican Sen. Bernie Moreno is introducing legislation aimed at penalizing companies who outsource jobs and operations overseas while at the same time providing financial support to avenues that create American jobs.
The HIRE Act is a proposed bill by Congressman Raja Krishnamoorthi aimed at increasing H-1B visas from 65,000 to 130,000 annually to help close the skills gap in the U.S. and bolster STEM education. This proposed legislation focuses on strengthening the H-1B program by increasing the number of available visas, but it is not current law; it's a legislative proposal. The current H-1B visa program is for specialty occupations requiring a bachelor's degree or higher and has an annual cap of 65,000 regular visas, plus 20,000 for U.S. advanced degree holders.