Earlier quoted context omitted.
> If this law does pass, I believe those being asked to leave should sue the US for repayment of Social security and Medicare taxes paid Uh, they’ll lose, but I guess some lawyers will make some money. > after all they're non resident aliens and should be taxed as such. They are taxed exactly like other non-immigrant aliens permitted to work in the US.
"They are taxed exactly like other non-immigrant aliens permitted to work in the US." --> incorrect. Look up 1040-NR. As a non-resident alien, you're not required to pay social security and medicare. So, H1-B is basically the taxation of a resident, BUT rights of a non-resident [no access to social safety net, or voice in political system by means of voting]. I'm all for uniform policies, tax non-residents as non-res…
1040-NR is an income tax form, and has basically nothing to do with Social Security and Medicare taxes, which are payroll taxes rather than income tax. They do show up onninckme tax forms when paid as self-employment (including the 1040-NR, where presumably they would not appear if they did not apply to nonresident aliens.)
> As a non-resident alien, you're not required to pay social security and medicare.
Incorrect, from the IRS: “Wages paid to nonresident aliens employed within the United States by an American or foreign employer, in general, are subject to Social Security/Medicare taxes for services performed by them within the United States” [1]
[1] from https://www.irs.gov/individuals/international-taxpayers/alie... which also provides details of the exceptions that apply to certain work in certain non-immigrant visa categories.