The purpose of this legislation, known as the Halting International Relocation of Employment Act or the HIRE Act, is to impose a tax on payments made by U.S. taxpayers to foreign entities for services provided to consumers in the United States. The main objective is to discourage outsourcing and encourage the use of domestic labor by making it more expensive for businesses to hire foreign service providers. Key provisions of the law include the introduction of a 25 percent excise tax on what is termed "outsourcing payments." These payments are defined as any fees or charges made by U.S.