So, I’ve long had issues with H-1B Visas, and all types of guest-worker visas. Not only do they take jobs from natives, in many cases (but not all), they create a class of workers with limited rights. Bosses don’t just want guest workers because they are cheaper and drive down wages, but because they can be mistreated. No job, no visa, and the time to find a new one is short: sixty days in the case of H1-Bs.
The idea behind Trump’s fee, I assume, is to make it so that companies will hire more Americans. Adding 100K makes it so that, in most cases, companies should only hire workers when they really can’t find a qualified America.
The problem is that big multi-nationals, the folks who use H1-B’s the most, mostly hire workers for jobs like IT and research which don’t have to be done in America. So, instead of hiring Americans, they’ll most likely just move the jobs and facilities to other countries.
The solution is an extraterritorial tax. (America does these all the time, it can be done.) Simply tax the firms no matter where the workers are, and crack down on foreign contracting companies by taxing companies which hire such contractors.
This is radical, to be sure, a lot of large companies don’t pay tax, after all, and you’d have to set it up so they can’t avoid these taxes, no matter how many offsets they have or where they hide their money.
This can be done. The idea that America can’t force offshore banks to give the IRS any information it wants is ludicrous. They broke Swiss banking secrecy, they can break Panama’s and Ireland’s. A few nasty threats, if sincere, would work. Heck, the US invaded Panama not so long ago and some simple bank sanctions would make it so that money can’t move out of banking havens.
This isn’t done, and won’t be done for the simple reason that the bipartisan consensus is that corporations, especially big ones, shouldn’t pay much tax and that it’s OK to let them get away with tax avoidance. The US is still their biggest market, they can’t leave it and the US can bring them to heel any time it wants. (Where are they going to go? Europe will do what it’s told and they don’t want to live in China or Russia.)
Implementation matters and even when Trump has a good idea, he doesn’t think it thru. It’s also true that in some fields (medicine, for example) the US just does not produce enough professionals. If you want to cut back on foreigners doing those jobs, you need to train more workers domestically.
Trump’s one of those executives where you mostly don’t want him implementing your ideas (tariffs) for example, because he’ll screw them up and discredit them. That’s what happens when you elect a corrupt, incompetent senile old man who doesn’t have competent advisors and enough sense to let them run the government.
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