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Not even close. US 2025 defense spending is $831B, and that's way too low. 2025 spending is only 2.9% of the US GDP. Considering our worldwide responsibilities, the aggressive Chinese military posture, and the woeful state of our hardware systems, we probably should be spending 5% of GDP on defense, given Cold War averages.So just slash defence spending job done.
Coupled with the massive tax hike from Tariffs , should be all good no?
The US has introduced a sweeping new bill that could shake up global outsourcing. The Halting International Relocation of Employment (HIRE) Act, tabled in September 2025 by Ohio Republican Senator Bernie Moreno, seeks to impose a 25% tax on payments made to foreign firms for services consumed in America. These “outsourcing payments”—covering fees, royalties, and service charges—would also lose their tax deductibility, hitting US companies dependent on offshore IT and business services.
The bill proposes using the tax revenue to create a Domestic Workforce Fund, financing training and apprenticeships for American workers. If passed, the measures would take effect for payments made after 31 December 2025, targeting cost-driven offshoring that, according to backers, hurts US graduates and weakens local employment.
Unfortunately all that means is that more engineering teams will be solely co-located in countries with engineering talent like India and China and there will be fewer jobs left for folks in the US and EU.![]()
US HIRE Act: 25% Outsourcing Tax Impact on Indian IT Stocks & Market Sentiment | Kotak Securities
US HIRE Act proposes a 25% outsourcing tax on foreign IT services. Learn its impact on Indian IT stocks, outsourcing, margins & market sentiment. Stay updated with Kotak Securities.www.kotaksecurities.com
Well, like it or not, it will most probably continue. With unemployment of university graduates being higher than national average and immigration as hot topic all across the world (not only in US) I am sure that we will see more and more people voting for this. Not only US, we have similar initiatives in EU.
Indeed, there is some quite staggering zero sum game "thinking" going on here with this policy.Unfortunately all that means is that more engineering teams will be solely co-located in countries with engineering talent like India and China and there will be fewer jobs left for folks in the US and EU.
Place a tax on something and you will get less of it. So we'll have less H-1B workers, most likely.The order, which takes effect on September 21 at 12:01 a.m. ET, effectively bars H-1B workers from reentering the country after that deadline unless their sponsoring employer pays the fee.
How is this a sanction on India? Lower remittances back to India? If not, India benefits from not having so many trained and skilled workers emigrate to the US rather than stay and bolster the Indian work force.Place a tax on something and you will get less of it. So we'll have less H-1B workers, most likely.
I view this as an additional sanction on India due to the Russian oil they're buying. That means the fee could be eliminated, as soon as India does what Trump wants.
This is what the google AI says when I searched for "news about India diaspora and employment"How is this a sanction on India? Lower remittances back to India? If not, India benefits from not having so many trained and skilled workers emigrate to the US rather than stay and bolster the Indian work force.
I doubt Gemini is biased.This is what the google AI says when I searched for "news about India diaspora and employment"
Aside: I should probably check other AIs since google's might be biased on this topic. Google uses a lot of H-1Bs.
So, Modi likes highly skilled people to emigrate? Or perhaps he likes the $33B or so per year the US emigrants remit back to India?
- India's Response:
Indian political parties have criticized the move and Prime Minister Modi's response to the U.S. H-1B fee, calling his approach "escapist" and not firm enough, according to The Hindu.
Nonsense. The retention of skilled workers in India should bolster India's services sector exports.
- Potential Economic Impact on India:
The new policy could hurt India's services sector exports to the U.S., which are a significant contributor to India's economy and growth, according to The Indian Express.
How to get rid of the top 3 innovation policies :
1, Skilled immigration /done 100K fee
2, Trade and competition / done Tariffs
3, R&D tax credits. /next
I predict that Trump next will prohibit R&D tax credits.
View attachment 3660
Per year, over the cost of US-based personnel? I highly doubt it, except in very exceptional cases.Do the talents not bring 100k of value??
Because they have the ability to manage large organizations and budgets, drive the formulation of complex strategies, and provide visible leadership. Do some senior executives fail at these objectives? Of course some do. And then they get fired when they don't achieve results, much more often per position than typical individual contributor engineers.Otherwise why do CEOs and upper management get paid so much?
I don't think so. For example, just by reducing the candidate population for any job classification you most likely increase the median salary. You'll also increase job hopping.I guess if these incoming talents don't effect you then there is nothing but positives to come from the outcomes.
Amazon, Microsoft, JPMorgan, and Meta are among those companies, per employees and internal communications reviewed by Business Insider.
The last Hollywood strike, in 2023, was about AI, in part. Wikipedia: "The union also secured regulation of artificial intelligence (AI), prohibiting exploitation of writers' material to train AI models, produce digital recreations, and efforts to use AI to reduce writers or their pay.[16]"These are also some of the companies that will use AI to displace millions of workers in the next 3-5 years. I am seeing it already. My wife works for one of those companies. There are less than 1M H-1B visa holders in the US. The US will survive without them, no worries at all. Double digit unemployment is much more of a concern. I doubt US politicians are too worried about it but they should be.
Are you suggesting you can't just spend more to solve debt? How can that be !?!??!The US federal deficit is trending towards $1.9T for 2025. No realistic amount of taxation will cut the deficit by much. Only deep spending cuts can do it. Even Trump has to know that. I think he's just playing to what gets cheers from his support base.
AI OverviewThese are also some of the companies that will use AI to displace millions of workers in the next 3-5 years. I am seeing it already. My wife works for one of those companies. There are less than 1M H-1B visa holders in the US. The US will survive without them, no worries at all. Double digit unemployment is much more of a concern. I doubt US politicians are too worried about it but they should be.
These are also some of the companies that will use AI to displace millions of workers in the next 3-5 years. I am seeing it already. My wife works for one of those companies. There are less than 1M H-1B visa holders in the US. The US will survive without them, no worries at all. Double digit unemployment is much more of a concern. I doubt US politicians are too worried about it but they should be.
There are less than 1M H-1B visa holders in the US. The US will survive without them, no worries at all. Double digit unemployment is much more of a concern. I doubt US politicians are too worried about it but they should be.
Prime Example is China when America outsourced manufacturing to China for Sweet margins.