GOP bill targets OPT tax loophole after ICE finds 10,000 phantom workers
Fox News • • nation
Key Points:
- Federal investigators uncovered over 10,000 "phantom employees" exploiting the Optional Practical Training (OPT) program, which allows foreign students to work temporarily in the U.S., highlighting significant fraud and abuse within the program.
- Under current law, employers hiring OPT foreign workers are exempt from paying Social Security and Medicare payroll taxes, creating a financial incentive to favor foreign workers over American graduates.
- Republican Rep. Glenn Grothman introduced the "OPT Fair Tax Act" to require employers to pay the same payroll taxes for OPT workers as for U.S. workers, aiming to level the playing field for American graduates and curb program abuse.
- The bill complements a Senate proposal by Sen. Tom Cotton and follows increased scrutiny from federal authorities, including ICE, which labeled the OPT program an "uncontrolled guest worker pipeline" with widespread fraud.
- Experts estimate that closing the tax exemption could raise $27 billion to $36 billion in federal revenue over ten years, while lawmakers emphasize the need to prioritize American workers and restore program integrity.