NEW DELHI: The Congress on Tuesday warned that a bill introduced in the US Senate, proposing a 25 per cent tax on any American payments for outsourced work, will "light a fire in the Indian economy" if it becomes a reality.

Congress general secretary in-charge of communications, Jairam Ramesh, made the remarks while referring to the Halting International Relocation of Employment Act, or HIRE Act , introduced on October 6 by Senator Bernie Moreno of Ohio. The bill has been referred to the Senate Committee on Finance, he said on X.

The proposed legislation seeks to impose a 25 per cent tax on any US person making an outsourcing payment, defined as "any money paid by a US company or taxpayer to a foreign person whose work benefits consumers in the United States."

Ramesh said the bill

See Full Page