Trumps Additional Tax Policy – A Silver Lining for STEM OPT Aspirants
Close on the heels of the US Citizenship and Immigration Services’ (UCIS) policy memorandum issued on February 22, 2018 that said its visa officers could seek detailed documentation and more evidence from firms to establish that they have specific assignments in a specialty field for the H-1B beneficiary, the Donald Trump Administration has made their second move towards protecting local jobs in the US and preventing them from moving off-shore. The Base Erosion and Anti-Abuse Tax (BEAT) will be levied on companies with gross revenue of $500 million that outsource their work offshore to captive units. Effective January 2018, the rate of tax will be 5%, which will double to 10% in 2019. In parallel, the US has also considerably reduced the corporate tax rate from 35% to 21%, thereby incentivising companies to hire more people in the US.
The impact of these issues is being felt by US firms and they are reviewing their plans to establish or expand their R&D centres and businesses in India and other countries. Similarly, Indian companies are finding it difficult to deploy skilled professionals through the H-1B route.
While it is a known fact that there is a demand supply mismatch in the STEM fields, these policy reforms will result in a larger void that cannot be fulfilled by the local American work force. Hence, Trump’s three-pronged strategy to protect local jobs has come as a fresh wave of hope to thousands of Indian students, who are considering pursuing higher education in USA. With these developments, plum job opportunities have opened up for STEM OPT (Optional Practical Training) aspirants. Therefore, pursuing higher studies in US universities has once again become a prime proposition for aspiring Indian students and professionals.
Given President Trump’s H-1B and visa policies, universities have experienced a lower enrolment from non-funded international students as evidenced by the steady drop in the number of F1 student visas issued. In 2017, the United States has seen a massive decline of 28% in the number of F1 student visas from India, which has led university admission officials to take proactive measures, including visiting India and evaluating students on ground as well as providing spot admissions. With Trump’s policy reforms, this could be a be a win-win situation for students as the competition to highly selective universities has reduced to some extent, thereby providing a greater opportunity to get into a better university, offering more job opportunities.
Considering that the USA is home to leading companies and innovations in the STEM field, a vibrant start-up culture, and enormous research opportunities at universities, getting an American degree far outweighs the education and research opportunities offered by institutions in other countries. Choosing to secure an American university degree will naturally bring in the best job opportunities globally. The state-of-the-art research facilities along with distinguished faculty, flexible course structure and excellent work opportunities through the STEM OPT, all make for a great learning experience. This is why American universities continue to draw Indian students to apply in large numbers. So if you desire to pursue top quality education, and be hand-picked by the best global organisations, then the USA will provide you with the best of these opportunities.
Meet our counsellors today who will clarify any doubts about the new policy reforms and guide you on how you could come up a winner in every way with an American degree and work-experience.