Category: Travel

USIBC Calls for Expansion of H-1B Visas

Ajay GhoshTravel 0

There is a growing argument for and against the issue of H-1B Visa that allows skilled foreiners to come and work in the US, the land of opportunities. Arguing that limiting the number of H-1B visas would have an impact on the global competitiveness of American firms, an influential Indo-U.S. business advocacy group has called for expanding the number of work visas granted to foreign technology professionals each year.

“One of the areas the U.S. has to look at is H-1B. How do you expand that? By limiting the number (of H-1B visas) and making it expensive, it does have an impact on U.S. companies,”Mukesh Aghi, president of the U.S. India Business Council told the media.

Under congressionally mandated existing laws, every year the U.S. grants 60,000 H-1B visas and another 20,000 to foreign professionals who get higher degrees from a U.S. university. This year the U.S. Citizenship and Immigration Services received thousands more applications for H-1B visas than it could grant, forcing it to decide on successful applicants through a computerized drawing of lots.

Documented research and statistics have proven time and again that H-1B is one of the major drivers of the U.S. economy, particularly in the field of innovation and entrepreneurship. While H-1B is not a major issue this presidential election cycle, New York-based real estate tycoon Donald Trump, who is leading the Republican presidential polls, came out with a recommendation to increase the salary for H-1B visa holders, which along with his other proposals would make it tough for U.S. companies to hire foreign workers on H-1B visas.

Indian technology professionals are one of the major beneficiaries of H-1B visas. For quite some time, leading U.S. technology companies, including Microsoft, Facebook and Google, have been calling for an abolishment of the limit on H-1B visas.      In response to a question, Aghi dismissed the recent proposal of Trump.

“Politicians make proposals just to attract votes. Our position is that Indian workers who come on H-1B visas do bring efficiency and competency to U.S. companies,” said Aghi, who before joining USIBC was a member of the board of directors and CEO of Larsen and Toubro InfoTech.

“We support H-1B, and we would like to expand it,” he said. When asked about Trump’s proposal to hike the basic salary of H-1B visa proposals, the USIBC president said no one can “dictate” to corporations what kind of salary it needs to pay its employees. “It is not the business of the government to be in business,” he asserted, adding that it should be decided by market forces. If India does the same thing, where you have to pay a minimum salary to U.S. people coming to India, then it does have an impact on the U.S. cost structure. It can be reciprocal. Not just with India but with any other country,” he observed.

US Unveils Visa Modernization Initiative

Ajay GhoshBusiness, Travel 0

The US Government has unveiled a proposal designed to streamline various immigration procedures, including the process of applying for a T visa – for victims of human trafficking – or a U visa – for victims of crime and domestic violence, which has been applauded by Suman Raghunathan, Indian American executive director of South Asian Americans Leading Together.

DHS will now allow victims of domestic violence to self-petition for a permanent visa and simultaneously apply for work authorization. The Obama administration unveiled a proposal July 15 designed to streamline various immigration procedures; critics concur, however, that legislative action is still necessary to clear huge backlogs in the system.

Last November, President Barack Obama announced an executive order that would allow about four million undocumented people to live and work legally in the U.S. The executive order also expands the Deferred Action for Childhood Arrivals program, as well as allotting more employment-based visas.

Congress immediately blocked the measure, saying the president had overstepped his role, but the Senate allowed the order to stand. Twenty-six states then filed suit to block implementation of the president’s mandate. Texas U.S. District Court Judge Andrew Hanen issued a temporary injunction in February.

The White House Council of Economic Advisors has reported that the president’s executive actions, if fully implemented, would boost the U.S. gross domestic product to over $100 billion, expand the size of the American labor force, and raise average annual wages for U.S.-born workers by four percent over the next 10 years. The president’s actions would also cut the federal deficit by $30 billion in 2024, reported the three-member Council.

In keeping with the president’s mandate, Cecilia Munoz, director of the White House Domestic Policy Council, introduced a report July 15, “Modernizing and Streamlining Our Legal Immigration System for the 21st Century,” which highlights a number of new actions that federal agencies will undertake to improve the visa processing experience.

“Currently, the process to apply for a visa is complex, paper-based, and confusing to the user,” said Munoz. “Many immigration documents pass through various computer systems and change hands no fewer than six times,” she said, adding: “Our goal is to modernize this process and deliver a positive experience to our users.”

A team of engineers from the U.S. Digital Service agency will work with the Department of Homeland Security to bring the majority of the visa application process online and deliver consistency and ease of use throughout. The administration stated it is aiming to reduce government costs, reduce burdens on employers who must verify that their employees are eligible to legally work in the U.S., and mitigate fraud and abuse of the immigration system.

The new actions simplify the H-1B application process, along with reducing the number of documents needed for applications and extensions of H-1B visas. The new action also simplifies the process under which an employer can directly sponsor students on F-1 visas for legal, permanent employment.

The process of applying for a T visa – for victims of human trafficking – or a U visa – for victims of crime and domestic violence – has also been simplified. “There are numerous avenues for humanitarian relief provided to vulnerable individuals in our immigration system. However, many of our existing policies and regulations do not reflect the most recent laws. These recommendations will improve our system for individuals seeking humanitarian relief,” said the White House in a statement.

Suman Raghunathan, Indian American executive director of South Asian Americans Leading Together, cheered the simplification of the T and U visa application process and noted that DHS will now allow victims of domestic violence to self-petition for a permanent visa and simultaneously apply for work authorization. Currently, many victims of domestic violence remain in abusive households as their immigration status is linked to their spouse’s status. An abusive partner can hold immigration status as a weapon to keep a spouse in her place, note agencies that work with domestically-abused women.

But the action plan falls short of providing relief for many immigrants, said Raghunathan in a press statement. “The job is not done,” she said, adding that the plan cannot address visa backlogs, which require legislative action.

“Today’s announcement only further underscores the importance of the continued push for comprehensive immigration reform legislation that includes a path to citizenship,” said Raghunathan. “Our nation and our communities continue to need just and inclusive immigration reform legislation that includes a pathway to citizenship, keeps families together, and expands economic opportunity for all aspiring Americans. We remain committed to that ultimate goal,” she said.

In related news, Commerce Department Secretary Penny Pritzker July 15 commented on the value of immigrants to the U.S.’s economic growth goals at National Council of La Raza’s Annual Conference in Kansas City, Missouri.

“To succeed in the global economy, our path forward must ensure that America continues to be a place where anyone can contribute their ideas and abilities to our prosperity,” said Pritzker. “The United States has been built, strengthened, and sustained by generation after generation of immigrants. This remains true today.”

“Advancing permanent, comprehensive immigration reform is not just a moral obligation; it is a matter of economic necessity. If we do not welcome the best and brightest to our shores, if we do not attract the top minds, workers, and innovators to our communities: put simply, we will be left behind,” she said.

Pritzker said she was also inspired by undocumented youth, who are known as DREAMers.

“Every time I meet a DREAMer, I come away moved by their stories, inspired by their potential, and more committed than ever to their cause. They want the chance to change the course of their lives and participate in our economy. They want to be a part of America’s success in the years to come. Yet they too often sit in limbo,” she said.

India Urges US To Settle Social Security Payment Of Its Workers

Ajay GhoshFinance/Economy, Travel 0

Washington, DC: 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, with certain exceptions based on their nonimmigrant status. Social Security/Medicare taxes are paid back to people after they retire within this country. Social Security is the largest social welfare program in the US, accounting for 37% of the government expenditure and 7% of GDP.

H-1B workers, for instance, in the United States pay Social Security and Medicare taxes, but many that don’t remain as permanent residents are unlikely to see any benefit from those payments., as they leave this country after their visa status ends and do not enjoy the benefits of their contributions after they retire.  These temporary workers from India alone are estimated to contribute over $1 Billion in Social Security Taxes per year.

India has urged the United States to set up a high-level committee to look into a range of issues including American Totalization and non-tariff barrier, as also the Social Security Act that discriminates Indians working in the U.S. The previous rounds of talks have taken place over a decade, with no results.

Commerce Secretary Rita Teaotia flagged these issues during her meeting with the U.S. Trade Representative Deputy Ambassador Robert Holleyman in the Indian Capital. She highlighted the “need for setting up a high-level group to discuss India’s concerns on the U.S. Totalization and Social Security Act (how the policy was discriminatory towards Indian workers in the U.S. who ended up losing their social security contributions due to discrepancy in the visa and social security regimes, also indicating recourse to legal remedies),” an official statement said.

India wants early conclusion of the totalization agreement or Social Security Agreement with the U.S. It aims to protect interests of professionals of Indian-origin who contribute more than $1 billion each year to the U.S. social security system. The National Association of Software and Service Companies (Nasscom), an Indian IT industry group, said that Indian firms and their employees are currently paying in excess of $1 billion annually in Social Security taxes and getting no benefit due to the absence of a totalization agreement with the U.S. Depending on what would emerge from negotiations between U.S. and Indian officials, a totalization agreement could also cut payroll costs for Indian IT providers.

Under this pact, professionals of both the countries would be exempted from social security taxes when they go to work for a short period in the other country. The U.S. already addresses the issue under “totalization agreements” with nearly two dozen countries. Those agreements, under which foreign workers pay only the social security-like taxes due their home countries, are mostly with developed countries in Western Europe that have benefit systems roughly parallel to the those of the U.S.

India has a large number of professionals who are making a significant contribution to the U.S. social security system but are leaving the U.S. after five or six years. The benefits don’t kick in for 10 years so they all return [to India] after making a contribution without benefiting in any manner. A totalization agreement would be “mutually beneficial” for U.S. workers in India.

India has signed totalization agreements with other developed countries, which could be used as reference benchmarks; we may have different systems. But the objectives are the same. The US has entered into a Totalization pact with 24 countries.

Daniel Costa, an immigration policy analyst at the Economic Policy Institute, estimates that the affected companies could save 14% on the labor costs associated with H-1B workers. “That would give companies another incentive to hire H-1Bs because that’s an extra 14% of savings,” he added. The net savings for Indian firms would depend on how much they have to contribute to India’s system.

A pact to return social security taxes would be a big blow to the US given the large number of Indian professionals who work for short durations in the US. If the pact does indeed come through, then the US would also be forced to take a hard look on how to reform the immigration system to induce skilled professionals from India to settle down permanently in the country, which would point to a more expedited way to push through Green Cards, primarily.

All peoples throughout all of human history have faced the uncertainties brought on by unemployment, illness, disability, death and old age. In the realm of economics, these inevitable facets of life are said to be threats to one’s economic security.

For the ancient Greeks economic security took the form of amphorae of olive oil. Olive oil was very nutritious and could be stored for relatively long periods. To provide for themselves in times of need the Greeks stockpiled olive oil and this was their form of economic security.

In medieval Europe, the feudal system was the basis of economic security, with the feudal lord responsible for the economic survival of the serfs working on the estate. The feudal lord had economic security as long as there was a steady supply of serfs to work the estate, and the serfs had economic security only so long as they were fit enough to provide their labor. During the Middle Ages the idea of charity as a formal economic arrangement also appeared for the first time.

Family members and relatives have always felt some degree of responsibility to one another, and to the extent that the family had resources to draw upon, this was often a source of economic security, especially for the aged or infirm. And land itself was an important form of economic security for those who owned it or who lived on farms.

Following the outbreak of the Great Depression, poverty among the elderly grew dramatically. The best estimates are that in 1934 over half of the elderly in America lacked sufficient income to be self-supporting. Despite this, state welfare pensions for the elderly were practically non-existent before 1930. A spurt of pension legislation was passed in the years immediately prior to passage of the Social Security Act, so that 30 states had some form of old-age pension program by 1935. However, these programs were generally inadequate and ineffective. Only about 3% of the elderly were actually receiving benefits under these states plans, and the average benefit amount was about 65 cents a day. Wages paid to resident aliens employed within the United States by an American or foreign employer are subject to Social Security/Medicare taxes under the same rules that apply to U.S. citizens.

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