(Bloomberg Opinion) -The President Donald Trump would like to offer migrants who want to work in the SH.BAgold cards“Akin with a green card, with a significant difference: the price label. A gold card would cost $ 5 million, compared to Government fees of $ 235 for a green card.
It is a good idea, both in terms of government revenue and for wealthy future immigrants. But the US will have to be careful not to exclude other ways, more affordable for people to come and work and live in the country.
trumpet estimates that SH.BA can sell a million gold cards, which would give the holders of fast residence rights and a road to citizenship, including family members. This would bring $ 5 trillion. He also suggests that many companies would buy them to bring gifted workers. Even if his ratings are extremely optimistic, there are some real money on the table.
below stream Law, there is already a way to stay and citizenship by investing in the US through EB-5 program. Once the costs are calculated, and depending on the details, the cost is about $ 1 million. This is an 80% discount on a gold card, and the government receives the benefit of new jobs added to the US economy.
Trump's proposal aims to replace this program, which has been criticized for fraud and abuse. Charging a flat tariff can be better than to require a certain amount of investment, as there is no uncertainty if the person has paid and there is no incentive to unite dubious job creation schemes. The golden card may include some of the same problems as the EB-5 program in terms of being an easy way for spies and potential terrorists to enter America, but are unlikely to make them worse, and at least the price would be higher.
Economists, including the late Nobel laureate Gary Becker, have long entertaining The idea of selling the right to emigrate. It would help the US fulfill its fiscal obligations while offering residence for those who value it the most, at least as much as that concept is defined in monetary terms.
However, as usual, the devil is in detail. There is a good chance that Trump's proposal can work well – and a chance that can severely damage the nation.
A concern is the effects of selection. The $ 5 million payment means that the program would withdraw to older people, and would probably go somewhat male. None of those prejudices is a problem if other methods of settlement placement remain strong. But do you want?
With a gold card program, the government would have a financial incentive to limit other ways of creating a stay. You can get a Visa O-1 or a H-1bFor example, if you have a strong achievement record or an employer interested with a proper advantage and maybe some luck. None of those options costs anything about $ 5 million, not even with legal fees. Not everyone with $ 5 million reserve can get an O-1, or a proper job offer, but still: in difference, these options would compete with each other.
These other options are suitable for introducing new, talented people to the US, which is precisely the weakness of the Golden Card proposal. Ideally, the US would expand these other paths, but with a gold card program they can be narrowed so that the government can reap more revenue from gold card sales.
A young man who enters the SH.BA into an O-1-i who is for the “individual who possesses extraordinary skills in the sciences, arts, education, business or athletics”-can start a company or do basic research. But fiscal payment from such successes can be decades on the road. Otherwise, $ 5 million would be deposited immediately in government coffers.
The best case scenario is that the US offers a gold card and expands (or at least does not limit) the cheapest way to get into place. Replacing $ 1 million investment with a flat fee of $ 5 million, on its own, looks like an update. Many people who can afford $ 1 million can also afford $ 5 million. And because of America's success in technology in general and in particular, the value of living and working in this country has increased significantly. It is realistic for an immigration fee to reflect it.
The less favorable scenario is that the federal government gradually eliminates or reduces cheaper options for creating a stay. The population of America's immigrants would then be older and richer. This can work well for the short term, but it is far from the ideal for a longer term. In fact, a gold card program would serve as a form of deficit costs, favoring the current period for the farthest future.
In short, the concept of a golden card idea is a good one. But much depends on the execution.
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