Still, the ACIWA fees aren’t enough to make US Citizens cheaper than H1Bs. Another side effect is that housing prices would fall dramatically as the H1Bs would no longer be able to afford expensive Bay Area rentals. They would live 4 to an apartment, freeing up housing stock.
Let’s say that an H1B cost $150k today. If a large enough tax was imposed, the companies are still paying $150k, but $75k of that is a tax, and infosys is getting the other $75k, paying the H1B just $50k. Now, a US citizen would have $150K to pay his/her yearly expenses, while the H1B would only have $50k. The H1B wouldn’t be able to afford a $3000 apartment in the bay and would be forced to share a room. That would then drive down demand, reducing housing costs.
I am very confused about your post. Are you saying that an engineer receiving $150k in base pay today, will suddenly work for $75k tomorrow? Are you also suggesting that there will be two class of engineers, one getting paid 75k and another 150k in the same location ?
Still, the ACIWA fees aren’t enough to make US Citizens cheaper than H1Bs. Another side effect is that housing prices would fall dramatically as the H1Bs would no longer be able to afford expensive Bay Area rentals. They would live 4 to an apartment, freeing up housing stock.