Dennis Nixon, the Chief Executive Officer of Texas-based International Bank of Commerce, has publicly defended the H-1B visa program amidst a heated national debate. He voiced significant concerns that a proposed $100,000 fee for the visa would create an uneven playing field, disproportionately harming small entrepreneurs.
A "Prohibitive Fee" for Small Ventures
Nixon labeled the potential $100,000 H-1B visa fee as "prohibitive". He argued that while giant corporations like Amazon, Microsoft, Meta, and Apple could absorb this cost, small businesses and startups would struggle to afford it. This, he warned, would push foreign talent exclusively towards large corporations, stifling innovation at the grassroots level.
He bolstered his argument by highlighting that more than 45% of Fortune 500 companies were established by immigrants or their children. He cited tech behemoths such as Nvidia, SpaceX, and Alphabet (Google's parent company) as prime examples, noting that all of them began as small ventures that benefited from global talent.
H-1B Visas Complement, Not Compete
In an opinion piece published in the San Antonio Express News, Nixon addressed the common misconception that H-1B workers displace native American employees. He clarified that the program's regulations require employers to first ensure that hiring an H-1B worker will not negatively affect a native worker's job.
Nixon emphasized that immigrant workers typically possess different skill sets, filling specialized roles that complement American workers rather than competing with them for the same positions. He pointed to key sectors like finance and technology where this complementary relationship is crucial.
Economic Contributions of Immigrant Workers
The CEO outlined the broader economic benefits brought by skilled immigrants. "Immigrants are also consumers who live and work in the United States," he wrote. They contribute directly to the nation's Gross Domestic Product (GDP) by spending their earnings within the US economy, which in turn drives growth and creates new jobs.
Furthermore, Nixon noted that immigrants are statistically more likely to be of working age, have children, and start businesses at higher rates than native-born Americans. These factors collectively help expand the labor market and strengthen the economic fabric of the country.
Filling America's Ageing Workforce Gap
A central pillar of Nixon's argument is the demographic challenge facing the United States. He highlighted that America's workforce is ageing rapidly, creating a significant skill gap that cannot be filled domestically.
"Every day, nearly 11,400 American workers retire while only 7,212 enter the workforce," Nixon stated. This stark disparity makes it increasingly difficult for companies to find qualified employees, especially as skilled foreign workers are turned away. The H-1B program, established in 1990, is designed specifically to bring in workers with a bachelor's degree or higher to fill these critical specialized positions.
The H-1B visa has become a contentious topic, particularly during the Donald Trump administration, which proposed the high fee with the stated aim of discouraging its use, while simultaneously acknowledging that America needs H-1B workers for certain irreplaceable skills.
