06.27.07

Shocking H1-B Video may Result in an Immigration Bill Amendment

Posted in Contract Direct to the End Client, H1-B Visa, H1B, IT Outsourcing, L1 Visa, OffShoring Jobs is Tax Evasion, Offshoring, Offshoring Intellectual Property, Outsource the Outsourcers, Outsourcing Intellectual Property, Software Copyright, The Monopoly Game Applied To The IT Industry, outsourcing at 12:41 pm by Edward Pellon

I have been in the business of providing IT Consultants for 20 years, so needless to say, I have seen it all. The recent H1-B Video of the Immigration Law firm’s procedures to basically defraud America was shocking….but no surprise to me. For those of us who have been in the Business for years, we all knew this has been going on for years. It has been my opinion that the H1-B process is currently riddled with corruption and fraud.

Thanks to that now famous “H1-B Video”, the masses will understand what we mean by corrupt and unfair to Americans. That video is going to do more “GOOD” to the cause of bringing fairness and equity back to the Americans, than thousands of posts on these Blogs!! This video could not have come at a better time, when our nation is debating on how to handle the H-1B and L-1 Visa based worker. In my opinion, this Video exposes the true intent of the IT Industry Leaders who have been lobbying hard to increase the H-1B quota from 60K to 180K – 250K. If you have not seen it yet, check out the video below:

[youtube]http://www.youtube.com/watch?v=TCbFEgFajGU&eurl=http%3A%2F%2Famazingpetsvideo%2Eblogspot%2Ecom%2F2007%2F06%2Fperm%2Dfake%2Djob%2Dads%2Ddefraud%2Damericans%2Dto%2Ehtml[/youtube]
Now, in order to bring some equity back to the American tax paying workers, we at Peningo Systems would like to propose to Congress the following as the “H1-B and L-1 Visa Social Security and Medicare Recovery Amendment” to the current Immigration Bill:

- Any company that hires an H1-B or an L-1 Visa to work in the United States must pay a tax that is equal to 100% of the “Employer and Employee” portion of the Social Security and Medicare tax. This is important, since it takes away one of the “MAIN” incentives to fire an “AMERICAN WORKER” and replace them with an H1-B or L-1 Visa based worker. As it is, all H1-Bs, L-1s and their respective employers could be EXEMPT FROM PAYING SOCIAL SECURITY AND MEDICARE TAX! Also, many companies pay the employee on these Visa far less than an American, resulting in a lower tax overhead for the companies. Also by placing 100% of the FICA obligations on the company, even if the Visa holder is being paid less than the American, give some insurance that the hiring of such individuals is not strictly based on “cost of labor”. This Proposal is also very important, since it addresses an issue that is near and dear to every American, and that is, supporting Social Security.

- To combat the abuse of low pay to the H1-B and L-1 Visa holder, which results in the under cutting of the American based worker, which is a violation of the letter of the law, the Federal government must come up with a “Up To Date” Salary survey that would accurately reflect what an American actually would get in the free market place. Then the H1-B or L-1 Visa holder MUST be paid in the UPPER 10% of the Salary range…that’s right…. the H1-B MUST be paid in the UPPER 10% of the Salary range. This would insure that the H1-Bs are treated, in terms of cost, the same as an American and that the H1-B based worker is truly a talent that is needed!

If we implement these 2 proposals, then the H-1Bs would compete with an American based worker on the merits of his/her abilities and not solely based on the fact that the H1-B’s resume looks good and the H1-B is 10s of thousands of dollars cheaper than the American.

This is a fair way to bring equity back into the US as well as protect our Tax Base from the Tax Evading scheme of hiring foreign workers and avoid paying for Social Security and Medicare tax.

If you wish to voice your opinion, you are welcome in commenting to this post. If you wish to voice your opinion to a greater authority….Congress and/or your State Representatives, please go to the Peningo Advocacy Assistance Page

Thank you

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06.18.07

L-1 Visa – The Silent Killer to the IT Industry in the USA

Posted in Contract Direct to the End Client, H1-B Visa, H1B, IT Outsourcing, Intellectual Property, L1 Visa, OffShoring Jobs is Tax Evasion, Offshoring, Offshoring Intellectual Property, Outsource the Outsourcers, Software Rights, outsourcing at 2:00 pm by Edward Pellon

With all the immigration attention being turned to the current attempt by the Outsourcing Corporations to increase the H1-B Quota from 60K to 250K H-1B workers “PER YEAR” to enter and work in the United States, very little to nothing has been said regarding the workers entering the USA working on the L-1 Visa, which currently has NO QUOTA CAP.

As Outsourcing Offshore evolves many companies who have been entrenched in Outsourcing have learned that you need to have more control to have a remote chance to provide the quality of service that is needed to support operations in the USA. In response to this, these companies are now creating divisions overseas in the places like India. These companies are the name plates that we have associated with “Corporate America”, and by no coincidence are the same firms that often announce the laying off of thousands of American workers. The L-1 Visa allows companies with divisions offshore to transfer an employee internally from their division in the Offshore nation to the United States. Many of the qualities of the L-1 Visa are similar to the H1-B, with the exception that the L-1 can only work for the parent company.

Like the H1-B, the L-1 Visa employees may not have to pay for Social Security or Medicare or are paid at a lower salary based effecting the tax base. More importantly, the Employer of the L-1 visa holder may not have to pay for the “Employer” portion of Social Security and Medicare or are paying at a lower tax rate due t the low salary base. This is one of the “MANY” tax advantages and incentives that corporation have to “LAYOFF AMERICANS” and replace them with the L-1 (or H1-B) Visa workers.

Though it is clearly illegal in the letter of the law, many of the workers on either L-1 or H1-B are paid substantially less than their American counterparts….that they have replaced. It’s our opinion that as a result of replacing an American with an internal employee on an L-1 Visa, the company can save thousands, if not 10s of thousands per year, per employee when you factor in the cut in base salary and the savings from the lower tax base of the cut salary or possibly NOT PAYING FOR ALL OF THE SOCIAL SECURITY AND MEDICARE TAX OBLIGATIONS !!!! As you can see, this puts any American at a huge disadvantage!

We must remember the corporations really don’t give a “hoot” regarding the American based worker; they only give a hoot about making a buck …. as they should. It is the lawmakers of our land and the enforcers of those laws who have not step up to the plate. As a result, industries are being destroyed, as well as the lives of those who have worked in those destroyed industries. The true Traitors may not be the Companies who are currently stabbing us in the back……the true Traitors to us Americans are the Legislators and enforcers who do “Nothing” to combat this Corporate Scheme to “EVADE” Taxation while paying L-1 and H1-B Visa holders substantially less than their American Counterparts, which is in clear violation of the law.

In order to bring some equity back to the American tax paying workers, we at Peningo Systems would like to propose the following:

- A CAP must be placed on the number of L-1 Visa based workers than can enter and work in the United States per year.

- Any company that transfers an L-1 Visa into the United States must pay a tax that is equal to 100% of the “Employer and Employee” portion of the Social Security and Medicare tax. This is important, since it takes away one of the “MAIN” incentives to fire an “AMERICAN WORKER” and replace them with an internal transfer from an Offshore nation who’s on an L-1 Visa.

- To combat the abuse of low pay to H1-B and L-1 Visa holder, which is a violation of the letter of the law, the Federal government must come up with a “Up To Date” Salary survey that would accurately reflect what an American actually would get in the free market place.

I plan to personally deliver these proposals to my Federal Representatives.

If you agree with me, please feel with sharing these proposals with your Federal Legislators.

If you wish to voice your opinion, you are welcome in commenting to this post. If you wish to voice your opinion to a greater authority….Congress and/or your State Representatives, please go to the Peningo Advocacy Assistance Page

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