The biggest criticism of the US government's H1-B visa program is that it takes high-tech jobs away from deserving US citizens. A new visa proposal could actually have the opposite effect: It may create jobs in the US.
A so-called "entrepreneur's visa" would allow foreign citizens who start new businesses and create jobs in the US to stay in the country, according to The Wall Street Journal. The entrepreneur provision is part of a larger visa proposal that would make it easier for foreign students to remain in the US after they finish their studies, the WSJ says. The students must have a specific skill set: They must hold post-graduate degrees in math, science, or engineering.
US visa programs and its university system have come under increasing fire in the past decade. Critics charge that specialty visas displace US workers; and that universities educate foreign students who take their skills back home after their education is done. The new proposal appears to address both issues by encouraging job creation and by retaining talent.
The H1-B visa program, which allows companies to hire highly skilled foreign workers in the US, has long been a cornerstone of the tech industry. As fewer and fewer US college students graduate with engineering degrees, tech companies say they have to look outside the US for qualified employees. The H1-B program allows individuals with highly specialized skill sets to work in the US in three-year increments, which can be renewed. (See: 2013 H1-B Visa Cap Remains the Same.)
Opponents of H1-B visas say the program has been exploited to bring in workers who are paid less than their US counterparts. This has been a particularly touchy subject in the last few years as US unemployment rates have increased and fair immigration policies are being debated in a presidential election year. (See: H1-B Critics Outline Program Flaws.)
The WSJ reports that the new bill already has bipartisan support. Additionally:
The bill would also create a targeted tax credit to encourage startup firms to invest in research and development. It would allow investors who cash in investments made in start up businesses to avoid capital gains tax as long as they had held the investment for at least five years. This last provision was included in a small business bill signed into law last year.
It would require the administration carry out a cost benefit analysis of any new regulation that has an economic impact of greater than $100 million.
The bill’s backers are hoping that by combining popular immigration provisions with tax and regulatory measures they can convince Senate leaders to bring the legislation to the floor, and avoid a wide ranging debate on immigration policy that would be almost certain to doom the bill in an election year.
This is a fact which is undisputed-America's Debt burden is Gigantic today and unless we get outside Investors to Help us Grow and Service our Debt burdens we are heading for a catastrophic debt Default/Non-payment of Liabilities(similar to what's going on in Europe Currently).
For a clear idea Read HERE
http://www.marketoracle.co.uk/Article34819.html
More examples ,the IRS decides to let Altria get away with a small fine to pay for a Tax dispute
Most probably,what's coming Next is A Tax Holiday for all Tech companies who hold Trillions of Dollars Offshore.
This is all being done primarily because this is an Election Year and the White House wants to pretend as if they doing a lot to Help the Economy improve and Cut the Budget Deficit.
You know what would really help ?If Regulations(and especially the Useless Paperwork) that it takes to start a Business be cut sharply within America today.
That and a total Rollback of Obamacare.
If we don't have to bother with these two Issues today,Americans can do everything to Generate Real and Sustainable Jobs today[Without any special incentives for Foriegners].
Besides Foriegners today are not that Stupid-If they want to Set up a Business they go to places like Hong Kong,Singapore and Dubai where Red Tape is minimal and you get to keep a majority of your Profits unlike what happens in the US where the Govt changes the rules on you whenever it suits them.
Is it any surprise that an increasing Number of Americans are every year,chosing to Revoke their US Citizenship(The most famous case has been Eduardo Saverin-The C0-founder of Facebook)???
This is an interesting point, in my opinion because positive impact coming from this step ahead in Visa, has to be integrated in a whole design for starting again the economy. Perhaps, while this step remains alone, positive impact will be limited. The discussion on restarting economy was one of the key point during recent G8 meeting, held a few days ago.
This is a positive move to create jobs for the US citizens as well as the foreigners. Although I cannot see much of a difference between this scheme and the existing scheme where the US entrepreneurs are creating jobs for both the US and the foreing workers. This scheme makes sense if the growth rate of the US entrpreneurs is declining and hence the number of new jobs are decreasing.
Although the new visa will increase the number of new jobs in the US created by foreigners, I think this scheme should also be backed up by tax incentives and similar cost reduction support for the foreign investors to be successful.
It is important to remember that creation of new jobs is a global problem at the moment and other countries also encourage and welcome foreign entrepreneurs to create new businesses. I know countries where government provides income tax reliefs for a number of years for new businesses as well as national insurance support for each employee etc.
"The time spent in a US college may not be enough to understand everything about how to do business in the country".
Yes Hospice the perspective you have viewed it - long run advantage for the should-be enterpreneurs. Fortunes and sustainability/competitions and more, all those may be considered at later once the unque start-ups get acquired by the already established ones.
Meanwhile, developed world has been the beneficiary of brain-drain ( brain- gainer), if students finish their studies instead of fighting it out with other job seekers on little jobs available government would rather allow them begin something in their fields. If that is not put in place, best of brains would eventually go somewhere else or back to their countries. Especially in this present financial chaos talents cant be compromised, still there is need to balance development in all other sectors of governance. That is long term goal! I think.
Even similar visa scheme got introduced in the UK last year - effective from April 2012.
"young entrepreneurs need more than open doors into the economy to thrive."
That's right. If that is true for US born citizens, it is much more true for new comers. Besides, it takes many years and studies to understand how to set-up a successful business in a new country.
Creating startups with an "entrepreneur's visa" may not be a problem, but my question is whether those companies could remain viable in a competitive market. There is a higher risk that most of the startups would fail due to many social and cultural reasons. The time spent in a US college may not be enough to understand everything about how to do business in the county
could really be a start of new things. I think it will do more in allowing foreigners come in, although it would help a few fresh graduates with the desire to start something fresh.
I believe this is just a part of a larger project, becuase young entrepreneus need more than open doors into the economy to thrive. Other things must be put in place to support and encourage them.
Such kind of entrepreneurial visa may create more cultural problems than with the current H1-B visa system.
Will the local American job seekers be ready to work under those Non-American owners of the company . The owner-worker relationship gets inverted here which can have a psychological problem among the native work force.
EBN Dialogue enables and encourages you to participate in live chats with notable leaders and luminaries. Not only editors and journalists, but the entire EBN community is able to comment and ask questions. Listed below are upcoming and archived chats.
Archived Dialogues
Thailand Stages a Comeback Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Euro-Crisis: What It Means for High-Tech Firms Join EBN Editor in Chief Bolaji Ojo and Contributing Editor Jennifer Baljko on Thursday, July 12, at 10:00 a.m. EDT for a Live Chat on high-tech and Europe's economic difficulties.
Microsoft Surface: Potential Winners & Losers What are the implications for the electronics industry supply chain of Microsoft Corp.'s decision to launch its own tablet PC? Join industry veteran and EE Times' systems and OEM expert Rick Merritt on Tuesday, July 3, at 12:00 pm EDT for a Live Chat on this subject.
Join EBN contributor Jennifer Baljko on Thursday August 23, 2012, at 11:00 a.m. EST for a live chat on how electronic manufacturers in Thailand have shored up their supply chain to reduce the impact of future natural disasters.
Peter Drucker famously said "Trying to predict the future is like trying to drive down a country road at night with no lights while looking out the back window." Yet in the razor's-edge world of electronics—with a lean supply chain and just-in-time demands—the need to know the future is vital.
You've heard the saying "the No. 1 supply chain risk is your people." That hasn't always been the case. But today's complex global supply chain requires a new type of multitalented employee. It's one who understands, finance, marketing, economics, is savvy with technology, graceful with relationships and can think analytically.
Where are these people? Are universities properly preparing the next generation supply chain professionals? How do train your existing workforce for these new, demanding positions?
Brian Fuller, editor-in-chief of EBN, will lead a 60-minute Avnet Velocity panel discussion that will ask and answer these and other questions swirling around today's supply-chain talent challenges.
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