Contact Congress about S. 2976: HIRE Act

U.S. businesses would face a 25% tax when they pay many foreign service providers for work tied to U.S. customers. They also could not deduct those payments as business expenses. The money would fund U.S. job training and apprenticeship programs.

Modern Action explains legislation in plain English, helps you choose whether to support, oppose, or ask for changes, and drafts a message tied to the bill, your stance, and the elected officials who can act on it.

HIRE Act is a Senate bill in committee. The latest recorded action: Read twice and referred to the Committee on Finance.

Latest action on S. 2976: Read twice and referred to the Committee on Finance.

Who this affects: This bill mainly affects U.S. businesses that pay foreign workers, contractors, or firms for services used by U.S. customers. It also affects foreign service providers that serve U.S. companies, since their U.S. clients may face higher tax costs. Workers and communities affected by outsourcing could benefit if the new Domestic Workforce Fund supports training and job programs where they live. Treasury, the Internal Revenue Service, the Department of Labor, and state workforce agencies would have new duties tied to reporting, enforcement, and funding.

Why this matters: The bill matters because it would make some offshore service work more expensive when that work serves U.S. customers. That could push some companies to rethink where they place jobs, how they use foreign contractors, and how they price services. It could also create a dedicated stream of money for U.S. worker training. The size of those effects is uncertain and would depend on Treasury rules, business choices, and how workforce programs use the money.

Key provisions in S. 2976

• U.S. payers would owe a 25% tax on covered outsourcing payments. The payments must go to foreign persons for services that benefit U.S. consumers.
• The bill defines outsourcing payments broadly. They can include premiums, fees, royalties, service charges, and similar business payments.
• Payments serving both U.S. and non-U.S. consumers would be split. Only the part tied to U.S. consumers would face the tax.
• Some entities in U.S. possessions would not count as foreign persons. The exception covers corporations and partnerships organized there.
• Businesses could not deduct the new outsourcing tax from income taxes. In plain terms, the tax itself would not lower taxable income.

How Modern Action helps you take action on S. 2976

You do not have to start with a blank letter. Modern Action turns the bill, your position, and the relevant congressional context into a message you can edit and send. The goal is to make contacting Congress clear, specific, and useful without forcing you to parse bill text or figure out the right office on your own.

Questions people ask about S. 2976

What is S. 2976?

U.S. businesses would face a 25% tax when they pay many foreign service providers for work tied to U.S. customers. They also could not deduct those payments as business expenses. The money would fund U.S. job training and apprenticeship programs.

How do I support or oppose S. 2976?

Choose support, oppose, or ask for changes on Modern Action. The action flow drafts the message for you and keeps the wording tied to this bill.

Who should I contact about S. 2976?

Modern Action uses your location to route the action to the congressional offices relevant to the bill and your representation.

Can Modern Action explain S. 2976 before I act?

Yes. Modern Action gives you a plain-English summary, current status, and action context before you send anything.