The U.S. relies on foreign workers and students in critical sectors like technology, healthcare, and academia. However, gaps in vetting processes for non-citizens in these roles pose national security risks, including espionage, intellectual property (IP) theft, and cybersecurity vulnerabilities.
A proposed dual taxation framework—treating foreign labor and student enrollment as regulated economic activities—aims to enhance vetting, reduce overreliance on non-citizens, and prioritize American CITIZEN workers and students.
Security Risks of Foreign Labor and Students
Espionage and Illicit Activities:
- Foreign Labor: In recent years, U.S. authorities have uncovered schemes involving foreign nationals exploiting weak vetting. For example, in 2023–2024, the Department of Justice prosecuted North Korean operatives who used stolen U.S. identities to secure remote IT jobs, generating significant illicit funds for weapons programs. While specific figures vary, such cases highlight vulnerabilities in visa screening for tech roles.
- Foreign Students: Foreign nationals on F-1 visas often access sensitive research in STEM fields, including AI and biotechnology, through university labs or Optional Practical Training (OPT). Historical cases, like those under the FBI’s China Initiative (2018–2022), linked some students to espionage or unauthorized data transfers, though the program’s broad approach drew criticism for profiling.
Cybersecurity Vulnerabilities:
- Non-citizen workers in tech, healthcare, and finance often hold privileged system access. Similarly, F-1 students under OPT may work in roles with sensitive data.
While isolated incidents of unauthorized access by foreign students have been reported at U.S. universities (e.g., 2020–2023), comprehensive data on widespread breaches is limited. Weak oversight in OPT and visa programs increases these risks.
- Intellectual Property Theft: Foreign students, particularly from strategic competitors like China or Iran, have been linked to IP theft in academic settings. Cases involve transferring dual-use research (with civilian and military applications) or violating export controls. Post-2022, U.S. policies like NSPM-33 have strengthened research security, but gaps in student vetting persist.
- Visa Fraud and Labor Exploitation:
- H-1B and L-1 Visas: These programs, intended for skilled workers, face issues like fraudulent credentials and wage suppression. Studies (e.g., Economic Policy Institute, 2023) show some employers use H-1B workers to undercut U.S. wages, impacting domestic workers.
- F-1 OPT/CPT Programs: These allow foreign students to work without employer sponsorship or mandatory E-Verify, creating oversight gaps. Rare cases of human trafficking or visa fraud through shell companies have been reported.
Visa and Green Card Vetting Gaps
- H-1B and L-1 Visas: Screening focuses on immigration and criminal history, not national security risks. Third-party staffing firms can obscure worker identities, increasing fraud risks.
- F-1 OPT/CPT Programs: These lack mandatory security checks or E-Verify, allowing access to sensitive industries with minimal oversight.
- Employment-Based Green Cards (EB-1, EB-2, EB-3): These pathways prioritize skills over security or loyalty assessments, even for roles in sensitive sectors like defense or AI.
Proposed Solution: Dual Taxation Framework
To address these risks, a two-pronged taxation system is proposed:
U.S. Foreign Labor Levy:
- Imposes a tax (e.g., 10–30% of payroll) on companies employing non-citizen workers via visas like H-1B or L-1.
- Encourages hiring U.S. citizens by increasing costs for foreign labor.
- Funds enhanced Department of Labor (DOL) audits, interagency vetting, and compliance in critical sectors like tech and defense.
U.S. Foreign Student Enrollment Levy:
- Taxes universities per F-1 or J-1 visa holder enrolled, targeting reliance on foreign tuition.
- Funds domestic scholarships, admissions capacity, and vetting for students in strategic fields (e.g., AI, semiconductors) or from high-risk nations.
- Includes a surcharge for enhanced screening in sensitive programs.
Institutional Accountability
- Implementation: Taxes integrate with IRS and SEVIS systems for automated reporting. Corporations and universities must disclose visa data, maintain access logs, and comply with DHS/USCIS audits. Non-compliance risks fines or loss of federal funding.
- Impact: Shifts vetting costs to institutions profiting from foreign labor and students, reducing taxpayer burden.
Expected Outcomes
- Reduced Security Risks: Limits foreign access to high-trust roles and sensitive research, mitigating espionage and IP theft.
- Workforce and Enrollment Reform: Incentivizes hiring U.S. workers and enrolling domestic students, reducing dependency on foreign pipelines.
- Enhanced Vetting: Revenue funds real-time interagency screening (DHS, DOL, DOJ, DoD, FBI) and research security teams.
- Reinvestment: Supports citizen training programs, merit-based scholarships, and advanced vetting technologies.
Balancing Security and Benefits
While addressing real risks, this framework must consider the contributions of foreign workers and students, who fill labor shortages and drive innovation. Overly restrictive policies could harm U.S. competitiveness in global markets.
The proposed levies, while feasible, would require Congressional approval and could face resistance from industries and universities reliant on foreign talent.
Conclusion
Classifying foreign labor and enrollment as taxable industries offers a framework to strengthen national security while prioritizing American workers and students. By aligning institutional incentives with robust vetting, the U.S. can address vulnerabilities without undermining its economic and academic strengths.