INTRODUCTION:
America’s strength lies in its citizens. The U.S. Citizen Workforce Protection and Employment Act delivers a bold vision to restore opportunity for American Citizen workers, safeguard national security, and rebuild a citizen-led economy.
At its core is the U.S. Foreign Labor Levy, a groundbreaking framework that formally recognizes Foreign Labor as a distinct economic INDUSTRY—a sector with its own workforce, compliance structures, and economic footprint. This recognition is reinforced by the NAICS 561399 proposal, submitted to the U.S. Census Bureau for the 2027 revision, which defines “Foreign Labor Placement and Management Services” as a formal industry under NAICS Subsector 561 (Administrative and Support Services).
This Act classifies all non-citizen workers on U.S. corporation payrolls—including H-1B, H-2A/B, F-1 OPT/CPT, green card holders, humanitarian EADs, and remote foreign hires—as part of this formalized industry. It imposes targeted taxation and oversight to balance market forces, close regulatory blind spots, and protect American Citizen workers.
With 16.7 million documented non-citizen workers—nearly 10% of the U.S. workforce (BLS, DHS, USCIS data)—and up to $1.72 trillion in potential levy revenue over four years, this Act represents a major economic correction to re-center labor policy around American citizens.
THE PROBLEM:
1. Job Displacement:
Millions of qualified American STEM and vocational workers are displaced annually by foreign labor channels, including H-1B, OPT/CPT, and green card hires. Universities, staffing firms, and offshore hiring platforms aggressively recruit non-citizens, contributing to workforce erosion.
2. Wage Suppression:
An estimated 60% of H-1B visa holders earn below local median wages, with employers exploiting wage loopholes and regulatory ambiguity. These disparities contribute to $180.2 billion in annual profit advantages for companies using foreign labor.
3. Regulatory Blind Spots:
The absence of a formal industry classification for foreign labor placement and management—until now—has obscured policy insight and enforcement. The proposed NAICS 561399 fills this data gap, codifying the production process of recruiting, managing, and compensating foreign workers, including visa filing, SEVIS/E-Verify compliance, and offshore staffing.
4. National Security Gaps:
Foreign labor placements in sensitive sectors (e.g., telecommunications, infrastructure) often lack adequate vetting. Without centralized data or industry-specific oversight, critical risks persist.
THE SOLUTION:
A U.S. FOREIGN LABOR LEVY + NAICS INSTITUTIONALIZATION
This Act introduces the U.S. Foreign Labor Levy—a 4-Pillar, 4-Tier Salary Framework backed by data infrastructure reforms such as the creation of NAICS 561399. This approach ensures that the recruitment, employment, and compensation of 16.7 million foreign workers is treated as a measurable, taxable, and auditable industry.
By codifying foreign labor as an economic sector, the Act enables:
- Taxation and data reporting parity with all U.S. industries.
- Targeted policy that incentivizes U.S. citizen hiring.
- Clear oversight of staffing firms, offshore subsidiaries, and university visa programs.
THE FRAMEWORK:
4-PILLAR, 4-TIER STRUCTURE:
1. Work Visa and Employment Levy
Per-worker tax escalated by salary tier; discourages unnecessary foreign hiring and penalizes underpayment.
2. Foreign Worker Payroll Levy
Employer payroll tax based on worker wage and visa category, aligning with NAICS 561399's focus on payroll and labor management compliance.
3. Employee Remittance Levy
Tax on outbound remittances sent by foreign workers, targeting economic leakage and reinforcing citizen-first labor policy.
4. Offshoring & Remote Labor Levy
Direct tax on remote foreign workers serving U.S. clients/employers, restoring demand for U.S.-based talent and curbing unregulated offshore labor pipelines—a key group included in NAICS 561399.
ECONOMIC VALUE AND JUSTIFICATION:
- Total Impacted Workforce: 16.7 million documented non-citizens (USCIS, DHS 2025).
- Annual Corporate Profit Advantage from Foreign Labor: $180.2B (BLS-adjusted).
- Potential Levy Revenue (2025–2028): $1.72 trillion.
- U.S. Job Recovery Potential: 6.68 million displaced American workers transitioned back into the workforce.
NAICS 561399 INTEGRATION:
The Act’s success hinges on formally recognizing foreign labor placement and management as a U.S. industry. The proposed NAICS code 561399 ensures:
- Federal Data Alignment across DHS, IRS, USCIS, and DOL.
- Statistical Insight into foreign worker recruitment, offshore employment, and student labor flows (F-1, OPT/CPT).
- Revenue Modeling for levy collections and enforcement tracking.
- Support for Future Legislation including the Student Education Protection Act and expanded citizen training programs.
This classification supports legislation and taxation in a way that is non-regulatory in itself but critically enables enforcement and economic modeling.
NATIONAL SECURITY:
Levy proceeds and new data streams support:
- Real-Time Vetting of foreign workers in sensitive roles.
- Employer Transparency via H-1B usage disclosures and audits.
- Offshore Monitoring through NAICS-classified remote labor tracking.
CALL TO ACTION:
Congress must act now to:
- Codify the U.S. Citizen Workforce Protection and Employment Act.
- Support adoption of NAICS 561399 in the 2027 revision.
- Realign labor incentives to prioritize American Citizen workers and restore fairness.
Supporting Documents:
- NAICS 561399 Proposal (June 2025)
- USCIS Visa Data, DHS EAD Reports (2024–2025)
- BLS Wage and Employment Displacement Statistics (2025)
- Economic Impact Summary (Available upon request)