The Indian IT industry has more to worry about aside from the proposal of overhauling the H1B visas. The United States Congress has now introduced two more legislations over the last two weeks, which are bound to have adverse effects on India’s IT industry prospects.
End Outsourcing Act
Three Senate democrats, Joe Donnelly along with Senator Sherrod Brown and Senator Kirsten Gillibrand, on January 30, 2017, introduced the "End Outsourcing Act" in the view of supporting American workers by ending outsourcing. “Companies that outsource jobs shouldn’t be subsidized by U.S. taxpayers and allowed to do business with the U.S. government,” said Brown in his official website. “We should encourage businesses to invest here and make sure tax-payer funded contracts are awarded to companies that employ American workers.” The legislation plans to take the following steps:- Federal contracts, funded by taxpayers, should go to companies that employ American workers.
- Federal policies to encourage businesses to invest in American communities.
- Incentives to be cut back and prohibit companies from receiving tax deductions in case they are outsourcing.
- Companies shipping jobs to foreign countries will be required to forfeit tax breaks and incentives.
- Tax incentives will be awarded to companies that relocate foreign jobs to rural and impoverished communities in United States.
