Labor - Legislative Outline

U.S. Citizen Workforce Protection and Employment Act: A Citizen-First Labor Framework

Introduction

The U.S. Citizen Workforce Protection and Employment Act introduces the U.S. Foreign Labor Levy, a 4-Pillar, 4-Tier Salary Framework to reduce overreliance on foreign labor, protect national security, and prioritize U.S. citizen workers in a competitive economy. 

Overuse of temporary worker visas (e.g., H-1B), green card programs, and humanitarian work authorizations displaces American citizen workers in industries like tech, healthcare, and manufacturing, while raising risks of espionage and data theft in critical sectors.

The Act ensures fairness for low-wage sectors (e.g., agriculture, hospitality) with constant levy rates for workers earning under $35,000, while incentivizing U.S. citizen hiring in skilled roles. Levy proceeds fund ongoing workforce training, enhanced vetting, and economic development. Through federal and state collaboration, the Act builds a citizen-led, equitable workforce for a prosperous future.

NAICS Proposal: Foreign Labor as an Industry

A proposal submitted to the U.S. Census Bureau establishes Foreign Labor Placement and Management Services as a standalone industry under NAICS 561399, within Subsector 561 (Administrative and Support Services), Industry Group 5613 (Employment Services).

• Submission Date: July 2, 2025 (USPS Signature Confirmation, signed by "D. James")
• Definition: Covers recruiting, managing, and compensating non-citizen workers, including temporary visas, permanent residents, humanitarian authorizations, and offshore arrangements, plus visa processing, USCIS/DHS compliance, E-Verify, and payroll management.
• Economic Impact:
  • Workforce: 16.7 million documented non-citizen workers (~10% of U.S. workforce).
  • Revenue Potential: $1.72 trillion (2025–2028).
  • Job Recovery: 6.68 million displaced U.S. jobs restored.
• Purpose: Provides data to administer the U.S. Foreign Labor Levy and support the U.S. Citizen Student Education Protection Act, empowering agencies (Census, BLS, BEA) to track and regulate foreign labor.

Definitions

• U.S. Citizen: A person with U.S. citizenship by birth or naturalization (8 U.S.C. § 1401 et seq.), excluding non-citizen nationals.
• Foreign Labor: Non-citizen employees trackable via employer records, including:
  • Temporary Worker Visas: H-1B, H-1B1, H-2A, H-2B, H-3, L-1, O-1, O-2, P-1, P-2, P-3, E-1, E-2, E-3, TN, I, R-1, Q-1, and certain J-1 categories (e.g., au pairs, trainees); F-1 with OPT/STEM OPT.
  • Green Card Holders: Lawful permanent residents (LPRs) via employment-based (EB-1 to EB-5), family-based (IR to F4), diversity, or humanitarian programs.
  • Humanitarian Categories: Workers with DACA, TPS, asylum, parole, or refugee status.
  • Exclusions: Non-work visa holders (e.g., B-2, F-1 without OPT) and undocumented workers.
• Green Card Employer: An employer sponsoring 100+ non-citizens for employment-based LPR status (e.g., EB-1, EB-2, EB-3, EB-4) annually, per USCIS Form I-140.
• Green Card Program: LPR programs, including employment- and family-based categories.
• Immediate Family: Spouse or unmarried children under 21 (biological, adopted, stepchildren), per 8 U.S.C. § 201(b).
• Levy: IRS-administered tax to prioritize U.S. citizen employment.
• Local Median Wage: 50th-percentile wage for an occupation in a metropolitan area, per BLS Occupational Employment Statistics.
• Salary Tiers: < $35,000 (low-wage, e.g., agriculture); $35,000–$60,000 (mid-tier, e.g., manufacturing); $60,000–$100,000 (skilled, e.g., nursing); > $100,000 (high-skill, e.g., tech).
• Temporary Worker Visa: Non-immigrant visas authorizing work, per 8 U.S.C. § 101(a)(15), as listed above.
• Top H-1B Employer: An employer with 1,000+ H-1B approvals annually, per USCIS.
• U.S. Citizen Worker: A U.S. citizen employed or seeking employment.

U.S. Foreign Labor Levy: Four-Pillar Approach

The U.S. Foreign Labor Levy comprises four IRS-administered taxes, with no exemptions, to make hiring foreign labor costlier than U.S. citizens. A 4-Tier Salary Structure (< $35K, $35K–$60K, $60K–$100K, > $100K) uses constant rates for low-wage workers (< $35K) to protect sectors like agriculture and hospitality, while escalating rates encourage U.S. hiring in skilled roles over three years.

1. Work Visa and Employment Levy

• Structure (per worker):
  • < $35K: 3% (Years 1–3, constant; e.g., H-2A agriculture, 300K workers, DOL 2024).
  • $35K–$60K: 7% (Year 1), 14% (Year 2), 20% (Year 3; e.g., manufacturing).
  • $60K–$100K: 10% (Year 1), 18% (Year 2), 28% (Year 3; e.g., nursing).
  • $100K: 15% (Year 1), 25% (Year 2), 45% (Year 3; e.g., tech, finance).
  • H-1B/L-1 Surcharge: 5% (Years 1–2), 10% (Year 3) for below-median wages (~300K workers).
  • H-1B Petition Caps: Top H-1B employers limited to 50% of 2019 approvals (Year 1), 25% (Year 2), 0% (Year 3).
• Implementation: Via USCIS petitions and IRS filings.
• Rationale: Constant 3% rate for low-wage roles ensures fairness; progressive rates deter high-skill foreign hiring (2.2M STEM grads/year, BLS).

2. Foreign Worker Payroll Levy

• Structure (on wages):
  • < $35K: 7% (Years 1–3, constant, e.g., healthcare aides).
  • $35K–$60K: 12% (Year 1), 20% (Year 2), 30% (Year 3).
  • $60K–$100K: 18% (Year 1), 28% (Year 2), 40% (Year 3).
  • $100K: 25% (Year 1), 44% (Year 2), 55% (Year 3).
  • H-1B Surcharge: 10% (Years 1–2), 15% (Year 3) for below-median wages.
• Implementation: Via IRS payroll taxes.
• Rationale: Constant 7% for low-wage roles preserves essential labor; escalating rates eliminate cost advantages in high-skill roles.

3. Employee Remittance Levy

• Structure (on ~$10,400 remittances/worker):
  • < $35K: 7% (Years 1–3, constant).
  • $35K–$60K, $60K–$100K, > $100K: 9% (Year 1), 14% (Year 2), 18% (Year 3).
• Implementation: Collected by financial institutions (e.g., banks, Western Union, PayPal) at remittance.
• Rationale: Constant 7% for low-wage workers ensures equity; uniform rates for higher tiers deter economic leakage.

4. Offshoring & Remote Labor Levy

• Structure: 15% (Year 1), 30% (Year 2), 40% (Year 3) per worker ($52K average).
• H-1B Third-Party Ban: Effective Year 1.
• Implementation: Via DOL employer reports and IRS collection.
• Rationale: Penalizes offshoring to boost U.S. hiring.

Revenue Allocation

Levy proceeds support U.S. citizen workers and the labor market:

• Workforce Development: Fund vocational training, apprenticeships, and certifications in tech, healthcare, and more.
• Retraining: Continuous programs for displaced U.S. workers to transition to new roles.
• Educational Grants: Support community colleges and technical schools aligned with labor needs.
• Financial Assistance: Temporary aid for displaced U.S. workers during job transitions.
• Job Placement: Partner with employers to place U.S. workers in skilled roles.
• Tax Incentives:
  • Hiring Credit: $7,500 (small businesses, <50 employees), $5,000 (medium, 50–500), $3,000 (large, >500) per U.S. worker hired; $10,000 in high-demand fields (e.g., healthcare) for 5 years.
  • Retention Credit: $1,000/year per U.S. worker retained over 12 months.
  • Payroll Tax Reduction: 10% for firms with 90%+ U.S. citizen workforce for 12 months.
• Economic Development: Fund infrastructure, community projects, and small business grants to create U.S. jobs.

Transition Assistance

• Training Programs: Continuous vocational training to prepare U.S. workers for in-demand roles.
• Tax Credits and Grants: Financial support for companies shifting to U.S. citizen workforces.

Enforcement Mechanisms

• Compliance Audits: Annual DOL/IRS audits verify levy payments, U.S. hiring, and wage compliance, cross-checked with USCIS, DHS, and E-Verify.
• Penalties: 100% levy surcharge, 5-year federal contract ban, public disclosure of violations.
• LCA Suspension: Suspend DOL’s Labor Condition Application (Year 1); require 90-day U.S. worker recruitment before H-1B petitions.
• H-1B Third-Party Ban: Enforced via audits.

Addressing Concerns

• Fairness: Constant rates for < $35K workers (3%, 7%, 7%) protect low-wage sectors (e.g., 300K H-2A, 130K H-2B, DOL).
• Impact Studies: Continuous assessments of wages, jobs, and inflation to ensure benefits.
• Mitigation: Levy funds support small business grants and training to ease transitions.

Public Awareness Campaign

• Education: Highlight H-1B abuses (60% below median wage, USCIS) and levy benefits using visuals like clustered column charts showing constant low-wage rates (3%, 7%, 7%).
• Community Engagement: Promote U.S. job opportunities via events and job fairs.

Feedback Mechanism

• Stakeholder Input: Online portal for businesses, workers, and communities.
• Review Periods: Biennial rate/cap adjustments to ensure fairness.
• Legislative Codification: Advocate for Congressional adoption.

Collaborative Efforts

• Interagency Coordination: DOL, IRS, DHS, USCIS, and Department of Government Efficiency streamline levy collection and vetting.
• State Partnerships: Align state/local training and job placement with levy goals.

National Security

• Enhanced Vetting: Strengthen H-1B and visa screening for critical industries, funded by levies.
• Agency Roles: DOL, DHS, USCIS, DOJ, DoD coordinate vetting and enforcement.
• Transparency: Public disclosure of H-1B hiring (visa status, wages); enhanced background checks for sensitive roles.

Conclusion

The U.S. Citizen Workforce Protection and Employment Act, paired with NAICS 561399, transforms the labor market through a data-driven 4-Pillar, 4-Tier Framework. By classifying and taxing foreign labor, it prioritizes U.S. citizens, reduces reliance on non-citizen workers, and enhances national security. 

Congress is urged to pass this Act to ensure a competitive, equitable, and citizen-led workforce.