Rebuttal To Forbes Article “To Create Jobs, Streamline The Issuance Of Visas”

Alex Nowrasteh, a policy analyst at the Competitive Enterprise Institute, argues that allowing skilled foreigners to work in the U.S. will boost entrepreneurship, and outlines the steps Congress should take to attract and retain these workers.

FULL STORY

Here are some of Mr. Nowrasteh’s Key points:

1.  Streamlining the process is a welcome reform, but there is no good reason why any firm should have to justify any business decision to the government. The Labor Certificate should be abolished.

–I do not know many who are fans of the labor certificatation process.  But, this is a completely radical and unrealistic recommendation.  Labor certifications are here to stay.  

–Attorney Cyrus Mehta points out the following shortcoming of U.S. Citizenship and Immigration Services (CIS) Director Alejandro Mayorkas’ recently outlined steps:  The horrendous EB-2 and EB-3 backlogs for Indian and Chinese beneficiaries will still persist. It makes no sense to encourage entrepreneurs from India and China if the wait to get a green card will be in excess of 5 years in the EB-2 or more than a decade in the EB-3.  Mehta 

2.  The EB-5 is vastly underused due to the costly bureaucratic approval process and limitations on the definition of a “commercial enterprise.” Streamlining the process and lowering the investment threshold would help tremendously to jump-start American economic growth.  In that light, a proposal from George Mason University economics professor Alexander Tabarrok deserves consideration.  Tabarrok suggests that visas like the EB-5 should be adjusted to count home purchases as an investment that earns a green card for the investor.  Current EB-5 criteria don’t count noncommercial activities — such as owning and operating a personal residence — as investments.

–I think that the point of the EB-5 is to stimulate commercial activity.  The legislators wanted to encourage the formation of companies and the creation of jobs.  Opening up the EB-5 to primary residential home purchases accomplishes neither of those objectives.

–Regarding streamlining the process, I do not see this as a significant barrier to the EB-5 program.  As Mayorkas referenced, USCIS is taking significant steps to streamline the process.  See this link:  EB-5 Streamlining.  I think the main barrier is that most qualified investors are not interested in paying U.S. income taxes on their worldwide income.  As a Legal permanent resident, you do have that obligation.   

–A lower investment threshold already exists:  investors can choose to invest $500,000 in a qualified regional center.  Investors with less capital than $500.000 can choose an E-2 nonimmigrant visa instead.