This bill disallows a federal tax deduction for outsourcing payments.

The bill defines outsourcing payments as any premium, fee, royalty, service charge, or other payment made

• in the course of a trade or business,
• to a foreign person (excluding a corporation or partnership organized under the laws of the United States or a U.S. possession), and
• for labor or services which benefit (directly or indirectly) U.S. consumers.