U.S. Foreign Labor Levy Legislative Proposal
The U.S. Foreign Labor Levy legislative proposal comprises a 4-Tax Pillar, 4-Tier Salary Framework targeting 16.7 million documented non-citizen workers and students across all U.S. industries, aiming to shift corporate hiring toward U.S. citizens through profit-driven incentives.
- The framework uses tiered levies to eliminate the economic advantage of hiring non-citizen workers and students.
- Generates significant tax revenue to fund U.S. workforce development.
- Ensures fairness in low-wage sectors like agriculture and hospitality.
The Work Visa and Employment Levy, Foreign Worker Payroll Levy, and Employee Remittance Levy apply a 4-Tier Salary Structure (< $35K, $35K–$60K, $60K–$100K, > $100K), with constant rates for low-wage workers (< $35K) to protect sectors where U.S. citizens are less likely to fill roles.
- The Offshoring Levy curbs remote foreign hiring.
- Undocumented workers (~5.7M, Pew 2024) are excluded as untrackable.
This assessment estimates the levies’ impact on 16.7 million documented workers and students (visas, green cards, humanitarian pathways, offshore employees, and student enrollment) and calculates illustrative U.S. tax revenue and U.S. citizen workforce return over a four-year period (2025–2028), demonstrating the framework’s potential to fund continuous workforce training and reduce reliance on foreign labor.
Baseline: Current Usage and Costs
- Volume: Approximately 16.7 million documented, working non-citizen workers and students annually, updated with verified data as of 11:29 AM EDT, June 15, 2025:
- Visas (~2.8M):
- H-1B: 500,000 (USCIS FY 2024–2025)
- H-2A (Agricultural): 310,676 (DOL 2024, FY 2023 adjusted for FY 2025)
- H-2B (Non-Agricultural): 196,420 (USCIS FY 2024–2025, including supplemental cap)
- TN (NAFTA): 50,000 (USCIS 2024)
- L-1/J-1: 100,000 (USCIS 2024)
- OPT (F-1): 250,000 (MPI 2025)
- Other Visas (O-1, P, etc.): 392,200 (adjusted to balance 2.8M total)
- Green Cards (Legal Permanent Residents, LPRs, ~6.2M in Workforce):
- New Employment-Based (EB): 150,000 principals annually (USCIS FY 2024–2025)
- Active EB Holders: 600,000 from prior years
- Total LPRs: ~13M (DHS/OHS 2024–2025), ~47.7% labor participation, yielding 6.2M working LPRs
- Humanitarian with Work Authorization (~1.2M):
- DACA: 425,000 (USCIS FY 2025 Q1)
- TPS: 675,000 (DHS 2024)
- Asylum Seekers: 500,000 (DHS 2024)
- Parolees: 150,000 (DHS 2024)
- Other Humanitarian: Adjusted to 1.2M total
- Offshore Foreign Employees (~6.5M): 6,500,000
- Salary Distribution (BLS, Adjusted for Inflation):
- < $35K: 30% (5.01M workers, ~$30K average)
- $35K–$60K: 40% (6.68M workers, ~$52K average)
- $60K–$100K: 20% (3.34M workers, ~$80K average)
- $100K: 10% (1.67M workers, ~$120K average)
- Overall Average Wage: ~$52K (weighted: agriculture ~$30K, professional ~$88K)
- Profit Edge: Non-citizen workers save firms ~$11,000 per worker annually (wage gaps, tax breaks), totaling $183.7B industry-wide (16.7M × $11,000).
Impact of the Four Tax Pillars
1) Work Visa and Employment Levy
- Structure (Per Worker, Tiered by Salary):
- < $35K: 3% (Years 1–3, constant). Cost: $900 ($30K × 3%)
- $35K–$60K: 7% (Year 1), 14% (Year 2), 20% (Year 3). Cost: $3,640–$10,400 ($52K)
- $60K–$100K: 10% (Year 1), 18% (Year 2), 28% (Year 3). Cost: $8,000–$22,400 ($80K)
- $100K: 15% (Year 1), 25% (Year 2), 45% (Year 3). Cost: $18,000–$54,000 ($120K)
- H-1B/L-1 Surcharge: 5% (Years 1–2), 10% (Year 3) for below-median wages (~300,000 workers). Cost: $4,000–$12,000 (Year 3)
- Affected Workers: All 16.7M documented workers.
- Cost Impact: By Year 3, costs exceed savings, reducing usage by 40–60% (6.68M–10.02M fewer workers).
2) Foreign Worker Payroll Levy
- Structure (On Wages, Tiered by Salary):
- < $35K: 7% (Years 1–3, constant). Cost: $2,100 ($30K × 7%)
- $35K–$60K: 12% (Year 1), 20% (Year 2), 30% (Year 3). Cost: $6,240–$15,600 ($52K)
- $60K–$100K: 18% (Year 1), 28% (Year 2), 40% (Year 3). Cost: $14,400–$32,000 ($80K)
- $100K: 25% (Year 1), 44% (Year 2), 55% (Year 3). Cost: $30,000–$66,000 ($120K)
- H-1B Surcharge: 10% (Years 1–2), 15% (Year 3) for below-median wages (~300,000 workers). Cost: $8,000–$12,000 (Year 3)
- Affected Workers: All 16.7M documented workers.
- Cost Impact: Year 3 costs eliminate savings, driving a 50–70% usage drop (8.35M–11.69M fewer workers).
3) Employee Remittance Levy
- Structure (On ~$10,400 Remittances/Worker):
- < $35K: 7% (Years 1–3, constant). Cost: $728 ($10,400 × 7%)
- $35K–$60K: 9% (Year 1), 14% (Year 2), 18% (Year 3). Cost: $936–$1,872
- $60K–$100K: 9% (Year 1), 14% (Year 2), 18% (Year 3). Cost: $936–$1,872
- $100K: 9% (Year 1), 14% (Year 2), 18% (Year 3). Cost: $936–$1,872
- Affected Workers: All 16.7M, worker-paid.
- Cost Impact: Year 3’s $728–$1,872 reduces worker supply by 5–8% (835,000–1.336M fewer workers).
4) Offshoring & Remote Labor Levy
- Structure: 15% (Year 1), 30% (Year 2), 40% (Year 3) per worker ($52K average). Cost: $7,800–$20,800.
- Affected Workers: Offshore employees (6.5M).
- Cost Impact: Year 3’s $20,800/worker adds $135.2B (6.5M × $20,800).
- Shift: Limits offshoring; reinforces U.S. hiring.
Breakdown of the Percentage Factor
- Year 1 (2025): A 10-20% initial drop (1.67M–3.34M fewer workers) is assumed as companies adjust mid-year, half-year impact ~835,000.
- Year 2 (2026): Reduction increases to 12.5-17.5% (2.0875M–2.9225M fewer workers) as tax rates escalate.
- Year 3 (2027): Reduction reaches 50-70% (8.35M–11.69M fewer workers) as costs exceed savings.
- Year 4 (2028): Stabilizes at 50% (8.35M fewer workers), with 50% remaining due to sector needs.
Combined Effect on “Need” for Foreign Labor
- Year 1: Total tax ~$10,286–$47,186; usage dips 10-20% (1.67M–3.34M fewer).
- Year 2: Usage drops to 12.5-17.5% (2.0875M–2.9225M fewer).
- Year 3: Total tax ~$11,228–$121,456; usage reduces by 50-70% (8.35M–11.69M fewer).
- Year 4: Stabilizes at 50% reduction (8.35M fewer).
- Shift: ~6.68M U.S. workers (80% of 8.35M) fill gaps, leveraging 2.2M STEM/labor pool (BLS data).
Annualized Tax Income (2025–2028)
- Assumptions:
- Worker count: 16.7M in Year 1, dropping to 8.35M by Year 4 (50% reduction).
- Salary distribution: < $35K (30%, $30K), $35K–$60K (40%, $52K), $60K–$100K (20%, $80K), > $100K (10%, $120K).
- Remittance tax worker-paid; others firm-paid.
- H-1B surcharge on 300,000 workers, dropping to 180,000 by Year 4.
- Offshoring: 6.5M (Year 1) to 3.25M (Year 4, 50% reduction).
- Yearly Revenue (Illustrative):
- 2025 (Year 1): Work Visa: $86.54B, Payroll: $152.80B, Remittance: $14.24B, Offshoring: $50.61B, Total: $304.19B
- 2026 (Year 2): Work Visa: $131.96B, Payroll: $212.98B, Remittance: $17.64B, Offshoring: $101.32B, Total: $463.90B
- 2027 (Year 3): Work Visa: $179.82B, Payroll: $250.36B, Remittance: $18.70B, Offshoring: $135.20B, Total: $584.08B
- 2028 (Year 4): Work Visa: $120.22B, Payroll: $167.36B, Remittance: $12.46B, Offshoring: $67.60B, Total: $367.64B
- Total (4 Years): $304.19B + $463.90B + $584.08B + $367.64B = $1,719.81B
- Annualized: $1,719.81B ÷ 4 = $429.95B/year
Taxation Summary:
- The 4-Tax Pillar, 4-Tier Salary Structure Framework flips the profit motive.
- By Year 3, non-citizen workers cost firms $228–$110,456 more than U.S. workers (e.g., < $35K: $4,628; > $100K: $121,456).
- Slashing reliance from 16.7M to 8.35M–11.69M.
- Firms hire ~6.68M U.S. workers (80% replacement), with tech shifting fastest due to high rates.
- Agriculture lags due to constant < $35K rates (3%, 7%, 7%) ensuring fairness for H-2A (310,676) and H-2B (196,420).
- Revenue averages $429.95B/year, funding continuous U.S. workforce training (e.g., STEM programs for 2.2M graduates annually).
- The framework proves the “need” for foreign labor is primarily economic, countered by fair, tiered levies with no exemptions.