To amend the Internal Revenue Code of 1986 to deny deduction for outsourcing payments.

# HR 7559 Summary **What the Bill Would Do:** This bill would change tax rules for U.S. companies by preventing them from deducting business expenses related to outsourcing—moving jobs or work overseas to other countries. Currently, companies can typically deduct these outsourcing costs as business expenses, which reduces their taxable income and tax liability. If passed, HR 7559 would eliminate this tax deduction specifically for outsourcing-related payments. **Who It Affects:** The bill primarily targets U.S.

corporations that outsource work internationally, such as moving manufacturing or customer service operations to countries with lower labor costs. It could affect companies across various industries and potentially increase their tax bills if they engage in outsourcing. Supporters argue it would discourage companies from moving American jobs overseas, while critics might say it could raise costs for businesses and consumers. **Current Status:** HR 7559 was introduced by Representative Austin Scott (R-GA) in the 119th Congress and is currently in committee, meaning it has not yet been voted on by the full House of Representatives. The bill has not advanced to a vote at this stage.