Tag Archives: immigration reform

US Immigration Reform: Why The Future is Bleak for Foreigners (and ultimately all Americans)

We often get asked here why things never seem to change in terms of US Immigration Reform and thus why we continue to have situations like;

– High Skilled Immigrants waiting for over 10 years in Waiting Lists to get their Green Card
Foreigners forced to stay in same jobs and forgo promotions, new jobs, help innovation and pay increases for 10+ years (and thus allowing critics to say foreigners are depressing wages)
– Companies like Microsoft are forced to open their R&D innovation center across the border in Canada where the skilled immigration laws are logical (therefore lost tax revenue for the US and less US jobs)
52% of Silicon Valley Companies have at least one immigrant co-founder employing hundreds of thousands of Americans and contribute billions of tax dollars to all Americans (inc. Google, Intel, Facebook, Yahoo, eBay, Paypal, etc.) yet we are forcing these companies to now base themselves overseas
– 84% of the Green Cards issues each year are for family and diversity reasons with only 16% awarded to high skilled talent (this compares poorly with countries like Canada, Australia, etc. where most permanent residents are high skilled talent)
– Thousands of dollars, long application processing periods and illogical visa criteria mean that foreigners constantly live in a state of fear in US
Illegal Immigration continue to remain an issue with no practical solution ever proposed and implemented and thus the issue of Legal Immigration continues to be pushed back

Vivek Wadhwa, who we often reference here has written a piece for the Washington Post about by Americans are so afraid of Immigrants. The reality is that this anti Immigrant sentiment in the US has existed throughout its history, it is just that the target group has changed. The Irish, Africans, Germans, Italians, Russians, Japanese and Jews were all big targets in days gone by for harsh treatment, bad feeling and sometimes actual law prohibiting them doing things. Today it is the Indians & Chinese that largely feel the brunt of anti immigrant sentiment on the legal side and Mexicans on the illegal side.

If you read Mr Wadhwa’s column and the comments underneath as well as watch the video there you will realize why this issue has no end in sight despite what President Obama and Republican Presidential nominee Mitt Romney may say in this Presidential year. Public sentiment in the US in this bad economic period regarding Immigration is low on both sides. There are loud anti-immigrant voices on both sides. On one hand on the right just so myopically focussed on building fence on the southern border and deporting any illegal in site. Then on the left unions and other workers blaming immigrants for their own bleak economic predicaments rather than the American politicians, American CEOs of bankrupt, bailed out and major layoff companies and the wider American populace for running up huge debt.

From a politicians perspective, Immigrants are never a constituency they have to worry too much about because they can’t vote. Generally it is half measure like President Obama’s recent directive to de-prioritize deportation of low risk illegal immigrants (i.e. children) to appeal to the large Latino populace in the country who are often friends and family of these illegal immigrants particularly in important swing states like Florida, New Mexico, Nevada and Colorado. There were 400,000 immigrants deported in 2011, mainly of Hispanic descent and this was clearly a politically motivated decision in terms of timing in an election year.

Because of the medium term benefit of having a pro skilled immigration policy being years in advance (i.e. Sergei Brin studies for 4 years at Stamford, co-founds Google in 1996 which goes public in 2004) not fitting into with the 2-6 year cycle of electing Congressmen, Senators and Presidents, the political will is also low.

While it is the Immigrants who pay the initial price for the status quo and Immigration reform inaction, it is ultimately all Americans that will feel the  brunt of the terrible policies of today. However if you are an Immigrant in the US today continue to persevere in your dream to live in the US regardless of the tough journey that lays ahead. Know that there are thousands of people going through exactly what you are experiencing, having the same questions and fears and enduring the same frustrations and anger that you have each day.

There is small pockets of movements in more modern companies looking at a more egalitarian approach to employment and actively learning more about foreign immigration rules. Hopefully more of these companies and leaders become the giants of tomorrow and are able to effect change. Although Bill Gates and Warren Buffet are huge advocates of much greater foreign immigration for prosperity in the US and even their considerable power and influence hasn’t changed much.

Cj

US Immigration Reform: The Start-Up Act & How Foreigners Are Saving America

In the midst of all the doom and gloom for foreigners in the US regarding real Immigration reform and just general fairness from the US Immigration System, Congress and the media, a small hope has emerged. Democrat Senators Mark Warner and Chris Coons along with Republican Senators Marco Rubio and Jerry Moran have come together to put forward Startup Act 2.0.

The general purpose of this legislation is to make it fairer and easier for foreigners to start companies and create jobs mainly for US citizens, get green cards and permanency in the US and ultimately keep the US at the forefront of global innovation and technology.

Why Is This Important?

–  40% of Fortune 500 Companies were founded by either immigrants or their children. This covers millions of American Jobs, many billions in US wealth and 1.7 trillion dollars in revenue with huge amount of tax dollars flowing to Federal/State/Local governments for the benefit of all. These include many of the most well known global brands including; IBM, Intel, Google, Paypal, Apple, Yahoo, eBay, Budweiser, GE, McDonalds, Colgate, etc. It is so large that the wealth created by these foreign born entrepreneurs in the US is greater than the GDP of all other countries in the world bar China and Japan.

– Almost half of the Top 50 Venture Backed private companies in the US have at least one immigrant co-founder. On top of that 74% had immigrants in top executive positions and these companies on average created 150 jobs which of course was mostly filld by Americans

So What Is The Problem

Quite simply it is Politics. And it is from all sides. We have highlighted in the past how Iowa Republican Senator Chuck Grassley and Illinois Demoractic Senator Dick Durbin tried to create a bill to further curb foreign work visas in a blatent attempt to deflect blame for a flaying US economy and job market onto an easy (and non voting) segment of the community. Beyond that the Republican attempts to heighten tensions of their base via the illegal immigrant invasion (even though numbers have been falling, deportations rising and net losses of these types of immigrants in recent years) combined with Democratic attempts to placate unions and old ways of doing things in an increasing globalized world has meant ultimately the American populace is suffering most.

Imagine if all or some of the above brands were not headquartered in the US but in India, China, South Korea, Brazil, etc. how many jobs directly and indirectly would be lost in the US, how far down tax revenues would be, the increase to the US Trade deficit, lowering of US GDP, technology leadership and ultimately global power. Most people reading this now either use regularly one or more of the services above and/or work, have worked or know someone who does work at one or more of those brands.

Startup Act 2.0

The Startup Act 2.0 proposes;

– A new STEM (Science, Technology, Engineering & Math) Visa so foreign graduate of US universities with a masters or PhD level degree in these fields can receive a green card to stay in the country
– An Entrepreneurs Visa for legal immigrants so they can start business that must employ American citizens
– An elimination of the per country caps for Immigrant visas allowing faster processing for certain high volume countries like China & India (Although as we have discussed before with current overall caps this still does not address huge overall backlogs and probably will cause increases in wait times for other countries unless the overall cap is increased)

The Act also addresses areas that encourage investment into these companies, tax credits for R&D and offsetting early year obligations as well as lowering of overall tax rates.

Ultimately this Act will help address some areas of US Immigration that badly reform and speaks to something that has a bipartisan chance of passing US congress as it directly relates to jobs and avoids areas such as Illegal Immigration, The Dream Act, H-1B Visa Reform & Current Visa Quotas which tend to be more highly politicized but ultimately a huge problem for the US.

Cj