Analysis of Proposed $100,000 H-1B Visa Fee

The announcement of a potential $100,000 fee on H-1B visas has sparked significant debate. Here's a detailed analysis of whether the U.S. can replace any potential loss of workers and the earnings of these employees.

💰 1. Earnings of H-1B Visa Holders

H-1B visa holders are typically employed in high-skilled roles, and their salaries vary based on the employer, role, and experience. Here are some key points:

Average Salaries: According to recent data, the average salaries for H-1B workers range from $90,000 to over $200,000, depending on the company and role. For example:

• Amazon: Average salary ~$149,812
• Microsoft: Average salary ~$163,672
• Meta Platforms: Average salary ~$199,944
• Apple: Average salary ~$202,303
• Nvidia: Average salary ~$213,634

Lower-Paid Roles: Some companies, particularly IT consulting firms like Tata Consultancy Services and Infosys, pay lower average salaries (e.g., ~$105,529 and ~$103,102, respectively). Critics argue that this undercuts U.S. workers.

🔧 2. Can the U.S. Replace Lost Workers?

The proposed $100,000 fee is expected to reduce the number of H-1B visas issued, as companies may find it economically unfeasible to hire foreign workers at this cost. Here's an analysis of whether the U.S. can replace these workers:

Potential for Domestic Replacement:

• A recent report estimates that 583,000 tech jobs could become available to U.S. workers by 2029 due to this policy shift. These jobs span high-demand areas like cloud computing, AI, cybersecurity, and data analysis, with average salaries of $167,533.
• Regions with high H-1B reliance, such as California (175,000 jobs) and New York (170,000 jobs), could see significant opportunities for U.S. workers.

Challenges in Replacement:

• Skills Gap: Only 20% of U.S. high school graduates are prepared for college-level STEM courses, and 40% of high schools do not offer computer science courses. This could hinder the ability of U.S. workers to fill these roles.
• Global Talent Disincentive: The fee may deter top global talent from coming to the U.S., potentially reducing innovation and competitiveness. For example, India, which accounts for 71% of H-1B visas, may see reduced opportunities, impacting U.S. companies reliant on this talent.
• Economic Impact: Companies might move high-value work overseas to avoid the fee, hampering U.S. leadership in fields like artificial intelligence.

💎 3. Conclusion

While the proposed $100,000 fee could theoretically open up hundreds of thousands of tech jobs for U.S. workers, the domestic workforce currently faces a significant skills gap that may limit its ability to fill these roles. Additionally, the potential loss of global talent could impact U.S. innovation and competitiveness. The long-term effects will depend on whether the U.S. can address its educational and training shortcomings to fully leverage this opportunity.

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