You’re Fired: How the HIRE Act 2025 Could Crush Offshore Freelancers
What Is the HIRE Act of 2025?
You watch the news — you know what’s happening in the United States.
First tariffs. Then borders. Then immigration. Then H-1B visas.
And now, the offshore services market has a bullseye on it 🎯
While most people are still arguing about manufacturing jobs and trade deficits, Washington just opened a new front: digital labor — the work that millions of freelancers, creators, and agencies outside the U.S. do every day for American clients.
The Halting International Relocation of Employment (HIRE) Act is the next domino. Introduced in 2025 by Senator Bernie Moreno (R-OH), the bill promises to “protect American workers from outsourcing.” In practice, it would tax the flow of remote work — hitting U.S. businesses that hire abroad with financial penalties so steep that many may simply stop.
For freelancers, it’s not a political issue — it’s survival. Because if this law passes, every invoice you send to a U.S. client could suddenly cost them 25 percent more, and they’ll be forced to choose between paying you or replacing you.
No one’s talking about it on mainstream news yet. But in D.C., it’s already moving through committee rooms, wrapped in the language of patriotism and job protection. And if history tells us anything, when the U.S. starts protecting markets, the rest of the world feels it first.
Moreno said, “If companies want to hire foreign workers instead of Americans, my bill will hit them where it hurts: their pocketbooks.” (Senator Moreno press release, Sept 2025)
⚡ TL;DR
If you earn even one dollar from a U.S. client, pay attention.
The Halting International Relocation of Employment (HIRE) Act of 2025 is a new bill in Congress that could wipe out offshore freelance income as we know it.
It slaps a 25% tax on every payment U.S. companies send overseas for services that benefit Americans — and then bans those companies from writing it off. That means your $25/hour rate suddenly costs your USA client $50/hour. The math kills YOUR deal.
This bill hasn’t passed yet, but it’s gaining momentum under the “America First” agenda.
If it goes through, millions of freelancers across India, the Philippines, Latin America, and Eastern Europe could lose U.S. clients overnight — not because of quality, but because of cost.
This isn’t hype. It’s happening right now in Washington.
Stay informed. Don’t get blindsided. The decision they make next year could decide whether you still have work.
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A: HIRE Act 2025 एक नया अमेरिकी कानून है जो विदेशी फ्रीलांसरों और कंपनियों को दी जाने वाली सर्विस पेमेंट पर 25% टैक्स लगाएगा।
इससे अमेरिकी क्लाइंट्स के लिए भारत के फ्रीलांसर को काम देना बहुत महंगा पड़ जाएगा — और कई प्रोजेक्ट वापस अमेरिका शिफ्ट हो सकते हैं।
अगर यह कानून पास हो गया, तो भारत के लाखों डेवलपर, डिजाइनर और एजेंसियाँ अपनी अमेरिकी आमदनी खो सकती हैं।
यह सिर्फ एक टैक्स नहीं, बल्कि भारत के फ्रीलांस सेक्टर के लिए सबसे बड़ा खतरा हो सकता है। -
A: La Ley HIRE de 2025 impondrá un impuesto del 25 % a los pagos que las empresas de Estados Unidos envíen al extranjero por servicios utilizados dentro del país.
Esto significa que contratar a freelancers o agencias fuera de EE. UU. será mucho más caro, y muchos clientes podrían cancelar proyectos o moverlos internamente.
Para los profesionales independientes en América Latina y España, esta ley podría reducir drásticamente los contratos con clientes estadounidenses.
Si trabajas para el mercado norteamericano, mantente atento: tu ingreso podría cambiar de la noche a la mañana. -
A: Ang HIRE Act ay isang panukalang batas sa U.S. na magpapataw ng 25% buwis sa lahat ng bayad ng mga kumpanyang Amerikano sa mga serbisyong ginagawa sa ibang bansa.
Kung maipapasa ito, magiging mas mahal para sa mga U.S. client ang kumuha ng Filipino freelancer o virtual assistant. Maaaring bumaba ang mga kontrata, mabawasan ang kita, at mas piliin ng mga kumpanya na mag-hire ng lokal.
Ito ay isang babala para sa lahat ng Pinoy freelancer: bantayan ang batas na ito dahil puwedeng makaapekto ito sa trabaho mo sa 2026. -
A: A Lei HIRE de 2025 propõe um imposto de 25% sobre os pagamentos que as empresas americanas enviam ao exterior por serviços usados dentro dos EUA.
Isso tornará muito mais caro contratar freelancers, designers e desenvolvedores brasileiros.
Muitos clientes dos Estados Unidos podem cancelar contratos ou optar por contratar apenas dentro do país.
Para quem depende de clientes americanos, essa lei pode representar uma grande perda de renda e oportunidades. -
A: La loi HIRE de 2025 imposerait une taxe de 25 % sur tous les paiements que les entreprises américaines envoient à l’étranger pour des services utilisés aux États-Unis.
Cela rendrait beaucoup plus coûteux pour les clients américains d’engager des prestataires ou des agences à l’étranger.
De nombreux contrats pourraient être suspendus ou rapatriés aux États-Unis.
Pour les travailleurs indépendants en Afrique francophone et en Europe, cela pourrait réduire fortement les revenus issus de clients américains.
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Core Provisions: The 25% Outsourcing Excise Tax
The bill contains two major financial changes for U.S. companies:
25% Excise Tax – A new 25% tax on any payment made to a “foreign person” for services that directly or indirectly benefit U.S. consumers.
No Tax Deduction – Businesses would lose the ability to deduct those payments as expenses.
Together, these provisions make most overseas work—from design and coding to consulting and support—dramatically more expensive.
Tax experts at BDO and Hunton Andrews Kurth LLP warn that the terms “foreign person” and “benefiting U.S. consumers” are undefined, leaving the scope dangerously broad.
Where the Bill Stands
The HIRE Act is currently in committee after being introduced in September 2025. Moreno tried to fast-track it, but it was blocked on the Senate floor. Even senators who agree with the “protect U.S. workers” goal say it needs full committee review.
No hearings or votes are scheduled yet, and no co-sponsors have joined. Analysts from BDO and Accounting Today note that bills like this often face long odds unless attached to larger tax packages.
If passed in its current form, the law would apply to payments made after December 31, 2025.
Political Context: “America First” Momentum
The HIRE Act sits within the broader America-First economic agenda that prioritizes reshoring jobs and penalizing global outsourcing.
Moreno’s language mirrors former President Trump’s rhetoric: “Globalist executives have spent decades shipping good-paying jobs overseas in pursuit of slave wages — those days are over.”
Former Trump adviser Peter Navarro also called for tariffs on all foreign remote workers — a sentiment this bill puts into law for services.
Economist Raghuram Rajan, former Indian central bank governor, called it “a service-sector tariff that could be more damaging than goods tariffs.”
Who Would Be Affected
If enacted, the HIRE Act could touch nearly every corner of the global freelance economy:
Freelancers & Independent Contractors – Software developers, designers, writers, and virtual assistants abroad who serve U.S. clients would face reduced demand.
Small Offshore Agencies – Marketing, IT, and support firms in India, the Philippines, Eastern Europe, and Latin America could lose U.S. contracts as costs rise.
Affiliate Marketers – Commissions paid to overseas creators promoting U.S. products could trigger the 25% tax.
Foreign SaaS & Tech Providers – Non-U.S. software and cloud vendors selling to American customers may fall under the same rule.
Platforms & Payment Services – Upwork, Fiverr, Toptal, Payoneer, Wise, and Stripe may need compliance systems to track or withhold the new tax.
The Economic Math: Why Costs Double
Here’s the simplified breakdown from U.S. tax experts:
Bottom line:
For large corporations, a $100 offshore payment effectively costs about $80 today after deductions.
Under the HIRE Act, it jumps to about $125 — roughly a 60% increase.
For small businesses and agencies, the hit is worse: that same $100 could effectively cost $125 instead of $70, an 80% jump once deductions disappear.
And here’s the kicker — most offshore freelancers are already about 40% cheaper than U.S. talent. The HIRE Act erases that gap overnight, making offshore work just as expensive—or more expensive—than hiring locally.
That’s roughly a 50–76% increase in real cost.
Example: A $25/hour offshore freelancer could suddenly cost U.S. clients $50/hour — the same as a domestic hire.
(Sources: BDO USA, Accounting Today, Tax Foundation)
Ripple Effects on Global Platforms
Upwork & Fiverr: Expect fewer U.S. job postings for overseas freelancers.
Payoneer & Wise: Reduced cross-border payments and new compliance burdens.
Affiliate Networks: Possible loss of U.S. brands willing to pay foreign partners.
Remote Staffing & PEOs: May restructure contracts to avoid classification as “outsourcing payments.”
In short, any business facilitating remote U.S.-to-foreign service transactions faces disruption.
Global Impact (2025-2027 Outlook)
India:
The Indian IT/BPO industry, worth $280 billion, could be hardest hit. Over 60% of its exports serve U.S. clients.
Analysts say this “undermines India’s cost advantage” and may force diversification beyond U.S. markets. (Times of India, NDTV)
Philippines:
Its massive call-center sector could lose contracts as U.S. firms absorb higher costs.
Eastern Europe:
Software and creative agencies in Poland, Romania, and Ukraine could see U.S. clients retreat or demand price cuts.
Latin America:
Mexico, Brazil, and Colombia—key near-shore markets—also fall within the tax’s scope.
Proximity won’t help; the bill targets all “foreign persons.”
Likely Secondary Effects:
Accelerated investment in AI automation as companies seek cheaper alternatives to human outsourcing.
Growth in reshoring and U.S.-based hiring to offset tax risk.
Possible experiments in routing contracts through U.S. subsidiaries or territories like Puerto Rico.
Emotional & Financial Reality for Freelancers
Millions of freelancers outside the U.S. depend on American clients for their livelihoods.
The HIRE Act’s introduction has already sparked anxiety and uncertainty, especially across India and the Philippines.
Freelancers fear losing contracts overnight as U.S. clients reconsider budgets.
Many may have to cut rates or pivot to non-U.S. clients — often for lower pay.
As one Indian outlet put it, “You may not even know the rule changed until your client cancels.”
Bottom Line: Stay Informed
The HIRE Act of 2025 may still be a proposal, but it signals a turning point in U.S. outsourcing policy.
If your income depends on U.S. clients, you need to monitor this bill closely.
The decision made in Washington could decide your paycheck next year.
Stay aware, subscribe to credible freelancer-community updates, and keep track of official developments — because this legislation, even in discussion, is reshaping how the world earns from U.S. business.
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The Halting International Relocation of Employment (HIRE) Act is a 2025 U.S. bill proposing a 25% tax on payments sent overseas for work that benefits American customers. If you earn money from U.S. clients, this law could make your services too expensive for them to continue hiring you.
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It applies to both. The bill taxes any payment from a U.S. business to a foreign person or company. That includes solo freelancers, remote assistants, small agencies, and marketing partners.
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A $100 payment could effectively cost your client $125 or more. When clients lose tax deductions and face new penalties, many may move work back to the U.S. or cut international contracts entirely.
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Yes. Platforms that process U.S.-to-foreign payments could be required to collect or report the new 25% tax. That may lead to new fees, restrictions, or fewer listings for non-U.S. freelancers.
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Possibly. If you earn commissions or royalties from U.S. brands or platforms, those payments could be classified as “outsourcing payments” under the law.
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They’ll still operate, but the transfers they handle might become more expensive. These payment processors may need to adjust systems or add compliance checks for U.S. outbound payments.
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It’s still in committee, but if passed, it could take effect for payments made after December 31, 2025. That means the changes could start hitting your income in early 2026.
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It affects all countries outside the United States. The bill doesn’t target specific regions — it applies to any foreign person or business providing services that benefit U.S. consumers. Whether you’re in India, the Philippines, Brazil, Mexico, Europe, or Africa, the same 25% outsourcing tax would apply. The only exemption is for services performed inside the U.S. or its territories.
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It’s part of a growing “America First” agenda. Lawmakers want to bring jobs back onshore, and after tariffs, borders, and visa cuts, the next target is digital outsourcing — the freelance and remote work market.
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Stay informed and diversify. Watch for updates on the bill’s progress, build clients outside the U.S., and prepare for possible changes in 2026. This isn’t about panic — it’s about being ready.
Sources: Verified industry and media coverage as of Nov 2025
Sources: Accounting Today, BDO USA, Senator Bernie Moreno – Press Release, Hunton Andrews Kurth LLP, The Times of India, NDTV, The Finance Story, KMK Ventures.
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