Taxing Offshore IT Services

The HIRE Act would levy a 25% tax on U.S. firms that use foreign outsourcing, prompting contract delays and renegotiations across India’s $283B IT sector. Even if the bill doesn’t pass as written, it introduces services‑sector protectionism beyond traditional goods tariffs and is likely to trigger intense lobbying and legal challenges. — This marks a possible policy turn toward taxing cross‑border services, reshaping global IT trade and corporate sourcing choices.