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New $100k H-1B visa fee pushes tech jobs offshore

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Re: New $100k H-1B visa fee pushes tech jobs offshore

#41
post #21

The H1B problem could be fixed overnight if the government handed them out by a simple test of ability rather than an idiotic lottery. Having world class researchers and engineers who command million dollar salaries enter the same line as a $60K worker at a slop factory like Infosys or TCS is beyond idiotic. And a high visa fee ultimately hurts more than it helps because it drives away both groups, and US tech needs…

The government can’t measure ability

Re: New $100k H-1B visa fee pushes tech jobs offshore

#43
post #35

Earlier quoted context omitted.

Call your congressional rep. The HIRE Act: 25% tax on outsourcing - https://news.ycombinator.com/item?id=45161419 - September 2025 Ohio senator introduces 25% tax on companies that outsource jobs overseas - https://news.ycombinator.com/item?id=45146528 - September 2025 https://www.congress.gov/bill/119th-congress/senate-bill/297...

So you'd move companies overseas and buy services instead of outsourcing work. It's really hard to do this in a way that won't be trivial to work around, and often in ways where you're likely to like the work around even less.

The US can tariff those out of country services if needed (through a combination of mandatory tax reporting and payment rails monitoring). An example of this today is SaaS taxes [1]. Please provide a non US service as an example and I'll propose how to rapidly replace it domestically. Out of country services can be cloned with LLMs if needed. The US government could sponsor tokens to US entities who employee US workers to clone these offshore or out of country businesses. Can overseas companies outrun the token dispenser and tax code disadvantages? You have to remember that outsourcing is primarily used by US businesses to arbitrage labor while having the US regulatory capture advantage. They want access to the US market without paying US labor costs.

This is what laws are for. "You can just do things."

> It's really hard to do this in a way that won't be trivial to work around, and often in ways where you're likely to like the work around even less.

So is collecting taxes, you just have a government funded entity grind tirelessly to keep closing the gaps. You make it economically burdensome to attempt to workaround. There will always be some leakage. "Work is hard." We know the labor exists in the US. We know offshoring is used to improve profit margins and to disempower workers to get more out of them. It is worth the effort, imho, if you want to keep the capital in the US versus sending it overseas and prioritize domestic workers over someone else's profits.

[1] https://stripe.com/guides/introduction-to-saas-taxability-in...

Re: New $100k H-1B visa fee pushes tech jobs offshore

#44
On the whole, this is a good thing. There are policy responses that can be enacted as needed, in an easier and more humane way. The goal of the US government should be to protect the interests of the American citizen, as much as the goals of India or China should be to protect their own interests.

Re: New $100k H-1B visa fee pushes tech jobs offshore

#45
I'm a former H1B visa holder and I feel very conflicted. My experience was a great one: I was hired by a startup on an H1B, successfully transferred to a different startup, then eventually went to work for a bigger company that sponsored my green card. I wasn't underpaid by those startups and I know this $100k fee means a similar company will never hire someone like me again.

But over the years I got to know many people on H1Bs who were indentured servants to their employers: once their green card application was in they were stuck. And if you're from a country like India that can take a decade or more. The whole thing feels like a scam and the $100k fee isn't going to deter those companies from doing it, it's still well worth the money to them.

I wish we saw sensible, well thought out reform here. Instead we get the Trump administration.

Re: New $100k H-1B visa fee pushes tech jobs offshore

#46
post #10

Earlier quoted context omitted.

H1B should have never been a lottery. It should be a stack rank by salary to deal with the over subscription.

Oh that's a really good way to handle it that would actually follow the intent of the program. You can't find someone to do a job? Then you need to compete on wage with other companies to bring someone in. Or, you know, raise your salary for local employees.

the salary weighted lottery today is a good step in the right direction IMO.

Re: New $100k H-1B visa fee pushes tech jobs offshore

#47
post #30
post #2

Not surprising, H1B for my entire career was a cost cutting measure. Every time we had a layoff some portion would be replaced with H1B. Every H1B that shared their salary with me has been underpaid. I know its anecdotal but sharing to see if anyone has seen similar.

Not my experience in big tech and HFT. We spent a ton of time and effort trying to find anyone to our standards, never able to find enough. H1B (and other work visas) were generally better and more Sr compared to locals we found. They got paid as much or more than everyone else. When we had great people we could not get here we would instead build a team overseas, taking a bunch of other jobs with them.

I can't speak to your particular situation, but in my experience this has been two factors; one is location -- it is sometimes hard in some locations to find senior talent whereas H1Bs are (naturally) more amenable to moving. The other is pricing, which is echoing the GP's point. Senior talent is expensive and you can get it at (apparently) considerably lower cost by looking for H1B applicants.

Re: New $100k H-1B visa fee pushes tech jobs offshore

#48
post #10
post #2

Not surprising, H1B for my entire career was a cost cutting measure. Every time we had a layoff some portion would be replaced with H1B. Every H1B that shared their salary with me has been underpaid. I know its anecdotal but sharing to see if anyone has seen similar.

H1B should have never been a lottery. It should be a stack rank by salary to deal with the over subscription.

That would make sense if the purpose of the program was to get the most valuable top talent. How do we decide who is the most valuable? We let the market decide. But that would cause upward wage pressure, which would undermine the real purpose of the program.

Re: New $100k H-1B visa fee pushes tech jobs offshore

#49
post #30
post #2

Not surprising, H1B for my entire career was a cost cutting measure. Every time we had a layoff some portion would be replaced with H1B. Every H1B that shared their salary with me has been underpaid. I know its anecdotal but sharing to see if anyone has seen similar.

Not my experience in big tech and HFT. We spent a ton of time and effort trying to find anyone to our standards, never able to find enough. H1B (and other work visas) were generally better and more Sr compared to locals we found. They got paid as much or more than everyone else. When we had great people we could not get here we would instead build a team overseas, taking a bunch of other jobs with them.

This has definitely not been my experience.
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