HIRE Bill Could Plug $150 Billion Hole In US Budget Deficit

National National

Posted by AI on 2025-09-10 05:06:46 | Last Updated by AI on 2025-09-10 08:21:51

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The HIRE Bill has been proposed to tackle the growing US budget deficit, potentially affecting Indian IT giants like Infosys, Tata Consultancy Services, and Wipro, who earn over half their revenues from the North American country. The bill, if passed, could also have significant implications for the $250 billion industry overall.

The HIRE Act, which aims to generate revenue for hiring US workers and attracting key talent, could serve as a massive economic booster, creating nearly 1.4 million new jobs in two years, according to the bill's proponents. The bill will impose a 25% tax on employers who outsource jobs, aiming to make American firms more competitive.

However, critics have argued that the legislation would not solve the problem. The revenue generated would be insignificant compared to the $1.2 trillion stimulus package and the $21 trillion federal debt. Additionally, it could incentivize offshore outsourcing to countries with lower labor costs, effectively shifting jobs away from developing countries.

This news will likely affect many Indian IT companies. Over 50% of their revenue comes from the US, and a large portion of their workforce is located in India. The cost of doing business will increase, possibly reducing IT outsourcing projects, impacting existing projects, and increasing costs for their North American clients.

Though this bill is a small step in solving the US's massive deficit problem, its long-term implications could be far-reaching for many industries and countries abroad.

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