All posts by Cheng, Cho, & Yee, Immigration Lawyers

Will Immigration Reform Hinder Innovation in the United States?

If President Trump’s immigration plan is implemented, American workers, the United States economy and the nation’s competitive advantage could suffer. Since many U.S. businesses depend on foreign talent to fill high-tech positions, and foreign entrepreneurs drive innovation, restricting immigration- especially for high-tech workers, will almost certainly hinder economic growth.

How Immigrants Positively Impact Innovation and the U.S. Economy

According to the National Foundation for American Policy (NFAP), immigrants play a significant role in the creation of jobs and the success of fast-growing companies as well as the global competitiveness of the United States. In fact, foreign founders have started just over half of the billion-dollar startup companies in the U.S. Additionally, immigrants are often key personnel in some of the nation’s leading privately held companies, holding important roles in management and product development teams in more than 70 percent of these businesses. Recent research also reveals that immigrants create an average of about 760 American jobs per billion-dollar startup company.

A wide variety of companies with immigrant founders provide an abundance of other products and services that benefit U.S. companies and consumers as well.

  • Uber, co-founded by immigrant entrepreneur Garrett Camp, has transformed transportation in cities throughout the United States.
  • AppDynamics, CloudFare, Cloudera and numerous similar companies that were founded or co-founded by immigrants assist U.S. businesses in maintaining information technology systems that enable them to compete in the global marketplace.
  • Numerous other foreign entrepreneurs have founded companies that facilitate online payments and assist with website traffic and security.
  • Without foreign talent, there would be no Apple, Google, Siri, or many of the other companies that fuel the American economy.

Unfortunately, news of Trump’s immigration plan has caused alarm for STEM students in the United States as well, and many are creating back-up plans that could cost the American economy significantly. According to the NFAP, international students have founded nearly one-fourth of America’s billion startup businesses.

Since new immigration restrictions will likely reduce the number of foreign born workers and students who are allowed to obtain visas that enable them to bring their talent to the United States, many experts are concerned that significantly fewer cutting-edge companies will be established here. The NFAP reports that if Trump’s immigration plan had been in effect over the past decade, very few if any billion-dollar startup companies would have been established in the U.S. during that time period.

House of Representatives Considers H-1B Changes

California Representatives Darrell Issa and Scott Peters have proposed changing the requirements for H-1B visas. Most notably, the proposals included within the “Protect and Grow American Jobs Act” would raise the salary threshold companies would be required to pay foreign workers within the program.

Under current rules, companies must pay foreign workers within the program a minimum of $60,000 per year. Issa’s and Peters’ proposal would raise that threshold to $100,000 per year. It would also eliminate the exemption for those individuals who hold a Master’s Degree.

It is the legislators’ belief that the changes proposed within the Protect and Grow American Jobs Act” will reduce abuse of the H-1B system while at the same time raising the salary standards for foreign workers who secure employment through the program. The changes were proposed after high-profile companies including Disney and SoCal Edison were found to have laid off American staff and filled their positions with foreign workers whom they paid less than their American counterparts.

Ostensibly, such a change would help protect the income of workers whose salaries should be above the proposed threshold. However, this change would also make it difficult for companies to fill positions between the existing and proposed threshold with foreign workers through the H-1B program.

Issa and Peters proposed Master’s Degree exemption is intended to address concerns over degree fraud. Critics of the existing exemption claim that foreign workers are obtaining degrees of questionable veracity in order to qualify for the exemption. However, evidence supporting these claims is lacking and does not show serious deficiencies in the quality of Master’s degrees obtained by foreign workers. Removing the Master’s Degree exemption which currently grants up to 20,000 workers visas each year will decrease the number of foreign workers who will be able to obtain an H-1B visa as they will have to compete for spots within the existing cap of 65,000.

As the legislative year begins, it is clear that immigration reform is going to be a front-page topic throughout 2017. As such, those currently living and working in the US via any of the existing visa programs should pay close attention to any changes that can affect them, their employer, or their family. Moreover, those who are considering applying for a visa to the United States should speak with a Chicago immigration lawyer and seek guidance navigating the application and approval process.

How Immigration Affects the U.S. Economy

In the current political environment, immigrants are facing a considerable amount of negative backlash. With the possible rollback or elimination of the Deferred Action for Childhood Arrivals, commonly calls the DACA Program, the financial consequences could be costly. According to calculations at the CATO Institute, the deportation of 750,000 will cost in excess of $60 billion. They also estimated that in addition to this substantial financial cost, the loss of these immigrants would cost approximately $280 billion in economic growth between now and 2027.

Immigration has been part of the foundation of the United States. While immigrants have certainly been discouraged over the country’s history, with different places and eras being particularly opposed to certain nationalities, the truth is that immigration has benefited the economy.

Financial Benefits

The US benefits from the arrival of immigrants as much as immigrants benefit from being in the country. One of the failings of the recently re-introduced H-1B visa bill is that it fails to account for those benefits. The focus has been on how much immigrants cost the US, but ideology fails to account for the economic benefits that usually outweigh the costs.

With the assistance of DACA, immigrants were able to find jobs, earn raises, and pay taxes. They are more likely to start new businesses, as well as file patents, at a rate much higher than Americans. According to The Economic and Fiscal Consequences of Immigration, the second generation American (the child of an immigrant) provides a net positive growth.

Other Economic Growth

One of the greatest economic benefits from the continuously changing social and cultural norms is innovation. The US has been one of the leaders of innovation and technology for nearly the last 100 years.

With globalization, the ability to innovate is what makes countries competitive on a large scale. Some of the biggest names in technology are first, second, and third generation immigrants. Immigration helps innovation by bringing in new ideas and ways of accomplishing tasks. It also lowers the cost of doing business. It creates new jobs and encourages development that is less prevalent in countries that have stagnant ideas.

Immigrants face a range of problems, both socially and legally, that require careful consideration. An immigration lawyer can help those in need to understand the laws and their rights, from visas to family matters. As politicians consider changing the laws regarding immigration, it is important to consult an immigration lawyer about current requirements and possible changes.

Proposed Bill Targets H-1B Visas

On January 4, 2017, United States Representative Darrell Issa reintroduced a very controversial H-1B visa reform bill that, if passed, will make significant changes to the existing program. The bill, commonly known as the Protect and Grow American Jobs Act, was initially introduced in July of 2016. It faced strong opposition and criticism in Congress. With President-elect Donald Trump’s plan to reshape immigration in the U.S., and his focus on the H-1B program specifically, the bill is expected to be a hot issue in the coming year.

The bill comes after a variety of companies including Disney, Southern California Edison and others allegedly used the H-1B visa program to hire foreign workers instead of attempting to fill positions with the existing workforce. According to Rep. Darrel Issa and co-sponsoring Rep. Scott Peters, both of California, the bill will help reduce the number of companies that are guilty of abusing the program by employing less expensive immigrant workers who do not have exceptional training or skills. Representative Zoe Lofgren, also of California, disagrees. According to Lofgren, the bill does nothing to prevent outsourcing and will simply encourage companies who abuse the visa program to concentrate on higher paying jobs.

Understanding the H-1B Visa Program

The H-1B visa program was initially designed to help American companies maintain a competitive workforce by employing highly trained foreign workers in positions that could not be filled by the existing workforce. Beneficial to both immigrants and the American economy, the program has brought innovation and expertise to science, engineering, math and technology industries.

Unfortunately, critics of the program say that many immigrant workers are severely underpaid which pushes down the wages of American workers in these fields. Under the new proposal, the minimum annual wage for H-1B visa holders would rise from just $60,000 per year to $100,000 per year.

Another concern that is targeted by the H-1B reform bill is importing workers who are not truly qualified for the positions they are brought to fill. With some foreign workers obtaining low-quality certificates in an attempt to qualify for exemptions, many positions are not left open for immigrants who are truly highly-skilled. Issa claims that by eliminating the master’s degree exemption, the legislation would cut down on abuse of the H-1B visa program. According to supporters, the bill will help ensure that the most talented foreign workers throughout the world have the opportunity to work in the United States.

The Number of Illegal Immigrants May Surprise You

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Immigration has always been a very controversial subject for many people. There has always been the myth that immigration numbers in the United States are rising – and quickly. However, recent studies are proving that is not necessarily true. In fact, a 2015 report from the Center for Migration Studies says the number of undocumented illegal immigrants has fallen below 11 million for the first time since 2003.

Why is the Number Dropping?

There could be many contributing factors as to why the number of illegal immigrants is dropping; but, honing in on the true reason can be difficult as these people are, after all, “off the grid.” Here are some theories:

  • The collapse of the U.S. economy in 2008 – when the economy took a turn for the worse in 2008, finding jobs and affordable housing was difficult. This trend continued well into 2010, thus making it more challenging for immigrants to sustain themselves
  • Improvement of job market and economy in Mexico – Mexican-born immigrants account for a significant portion of the total immigrant population. However, in recent years, the Mexican economy has dramatically improved. Because more jobs are available in their home country, less people are feeling the need to start over in the U.S.

Visas

A Washington Times article stated that nearly 500 000 new-comers overstayed their VISA in 2015. Although this is a small sample, this of course does them illegal immigrants. The government doesn’t normally allocate its resources to investigating and arresting these people unless they commit a crime, are well known to the police, they are collecting government assistance (meaning they would be in the system), etc.

Which States Have the Highest Number of Illegal Immigrants?

There are specific states in which the immigration (both legal and illegal) is higher. Usually these states are those with higher populations or booming downtown cities with nightlife and/or tourist attractions. Chicago places fifth on the list of states with an estimated population of over 500 000 undocumented immigrants. Rounding out the top five are Florida, New York, Texas and California with over 3 million estimated undocumented immigrants.

Bonita Cho, Immigration Lawyer (Chicago)

If you have more questions, contact us today. We’ll put you in touch with the best immigration lawyer Chicago has to offer. Simply fill out our convenient online form and we’ll get in touch with you.

Immigration hs always been a very controversial subject for many people. There has always been the myth that immigration numbers in the United States are rising – and quickly. However, recent studies are proving that is not necessarily true. In fact, a 2015 report from the Center for Migration Studies says the number of undocumented illegal immigrants has fallen below 11 million for the first time since 2003.

Why is the Number Dropping?

There could be many contributing factors as to why the number of illegal immigrants is dropping; but, honing in on the true reason can be difficult as these people are, after all, “off the grid.” Here are some theories:

  • The collapse of the U.S. economy in 2008 – when the economy took a turn for the worse in 2008, finding jobs and affordable housing was difficult. This trend continued well into 2010, thus making it more challenging for immigrants to sustain themselves
  • Improvement of job market and economy in Mexico – Mexican-born immigrants account for a significant portion of the total immigrant population. However, in recent years, the Mexican economy has dramatically improved. Because more jobs are available in their home country, less people are feeling the need to start over in the U.S.

Visas

A Washington Times article stated that nearly 500 000 new-comers overstayed their VISA in 2015. Although this is a small sample, this of course does them illegal immigrants. The government doesn’t normally allocate its resources to investigating and arresting these people unless they commit a crime, are well known to the police, they are collecting government assistance (meaning they would be in the system), etc.

Which States Have the Highest Number of Illegal Immigrants?

There are specific states in which the immigration (both legal and illegal) is higher. Usually these states are those with higher populations or booming downtown cities with nightlife and/or tourist attractions. Chicago places fifth on the list of states with an estimated population of over 500 000 undocumented immigrants. Rounding out the top five are Florida, New York, Texas and California with over 3 million estimated undocumented immigrants.

Bonita Cho, Immigration Lawyer (Chicago)

If you have more questions, contact us today. We’ll put you in touch with the best immigration lawyer Chicago has to offer. Simply fill out our convenient online form and we’ll get in touch with you.