Mike Moritz Slams New H-1B Visa Fee as 'Brutish Extortion'

New H-1B Visa Levy Draws Criticism

Last Friday, the Trump administration declared a new annual fee of $100,000 for H-1B visas. These visas facilitate the entry of 85,000 skilled foreign workers into the United States annually.

The fee will be levied on companies that employ these workers, with the technology sector being primarily affected.

Strong Reaction from Michael Moritz

Michael Moritz, a seasoned venture capitalist, has voiced strong opposition to this new policy. In a recent opinion piece published in the Financial Times, the former leader of Sequoia Capital likened the White House’s actions to an “extortion scheme,” drawing a comparison to Tony Soprano’s business practices.

Moritz contends that President Trump’s understanding of the rationale behind tech companies’ hiring of foreign workers is flawed.

Addressing Labor Needs, Not Cost-Cutting

He asserts that these companies seek specialized skills and aim to address existing labor gaps, rather than seeking to replace American workers or reduce expenses. Moritz predicts that the policy will have unintended consequences.

Specifically, he believes it will incentivize companies to move operations to locations like Istanbul, Warsaw, and Bangalore, rather than maintaining them within the U.S.

Global Talent Pool

“Graduates with bachelor's degrees from reputable universities in Eastern Europe, Turkey, and India possess qualifications comparable to those of American graduates,” Moritz stated in his writing.

Proposed Alternatives to Current Policy

Instead of limiting H-1B visas, Moritz proposes increasing their availability, potentially doubling or tripling the current quota. He also suggests automatically granting citizenship to foreign nationals who earn STEM PhDs from leading U.S. universities.

He cites successful examples of individuals who benefited from the H-1B program, such as Satya Nadella, CEO of Microsoft, and Sundar Pichai, CEO of Google.

Elon Musk and Mike Krieger, co-founder of Instagram, are also highlighted as further examples of the program’s positive impact.

Personal Connection to the Visa Program

Moritz himself benefited from a precursor visa to the H-1B visa in 1979. Since then, the billionaire has expressed his gratitude to the United States for its welcoming stance.