Immigration Proposals and Foreign Investment Zuzana Jerabek

Background  Foreign direct investment in the US dropped sharply in 2012  In 2013 foreign direct investment in the US could fall by 10% below the amount recorded in 2012  Foreigners invested $166 billion in US businesses and real estate, down 28% from the $230 billion invested in 2011  October the Obama administration launches the “Select USA” initiative  Offers a number of tools for foreign investors looking to invest in the US  Rebound in foreign direct investment will likely not materialize until 2014

US Immigration Law  Issues:  Visa system too complicated  Illegal work  Students leaving the country  Decrease in foreign investment  Two proposals:  Bipartisan plan X President Obama’s plan  Border control  Hiring illegal migrants  Earning citizenship by migrants living in the US  Promoting legal migration policy => economic growth -> opportunities for foreign investors

Bipartisan Proposal  S “Border Security, Economic Opportunity, and Immigration Modernization Act”  Bipartisan “Group of Eight”  Senators Charles Schumer (D-NY), John McCain (R- AZ), Richard Durbin (D-IL), Lindsey Graham (R-SC), Robert Mendez (D-NJ), Marco Rubio (R-FL), Michael Bennet (D-CO), Jeff Flake (R-AZ)  US GDP would grow by 3.3% ($700 billion) in 2023 and 5.4% ($1.4 trillion) in 2033  Introduced in Senate on April 16, 2013  Passed the Senate on June 27, 2013 by a vote of  Waiting for House approval

Foreign Investment  Current Legislation:  E-2 Treaty Investor Visa  Intention to return after expiration  EB-5 Investor Visa  High investment requirement  The proposal:  X Visa  At least $100,000 in investment OR at least 3 jobs and $250,000 in annual revenue  Temporary nonimmigrant visa  EB-6 Immigrant Visa  Leads to Lawful Permanent Residence  Significant ownership in US business and its start-up  At least 5 jobs and $500,000 in venture capital or investment OR 5 jobs and $750,000 in annual revenues

Proposal  Make the system less complicated  New system replacing the current one  Fewer types of visa  Move away from family-based immigration to a system tied to ECO necessity  Merit-based point system  Award points to immigrants with educational credentials, work experience and other qualifications  Additional requirements for specific types of visa -> potentially boosting the score  Implementation of a monitoring mechanism

Sources  mmigration-bill/ mmigration-bill/  reports/guide-s744-understanding-2013-senate- immigration-bill reports/guide-s744-understanding-2013-senate- immigration-bill  states/temporary-workers/temporary-nonimmigrant- workers states/temporary-workers/temporary-nonimmigrant- workers  nomy nomy  impact-of-immigration-reform-proposals-on- businesses-employees/ impact-of-immigration-reform-proposals-on- businesses-employees/  