Jay A. Soled (Rutgers; Google Scholar) & Timothy M. Todd (Liberty; Google Scholar), Hiring Biases Fostered Under the Code, 187 Tax Notes Fed. 2273 (June 23, 2025):

In this article, Soled and Todd argue that current tax law gives U.S. employers a financial incentive to hire job applicants who have secured certain foreign visa statuses, and they propose three reform options to address the resulting problems.

Conclusion
The vitality of the U.S. economy has traditionally rested on the strength and indefatigable spirit of its workers. Historically, Congress has instituted policies that promote this ethos, enabling the country to prosper. And perhaps even more importantly, the United States has made a collective promise to its workers as they plan their retirements. Yet, for a variety of reasons, the solvency of that promise is at substantial risk.

As the economy has become increasingly global, another important agenda item has arisen — namely, to foster an environment that encourages the best and brightest students to learn and even work in the United States, which arguably inures to the country’s collective benefit. The student visa tax exemption is emblematic of that policy, which has rolled out the red carpet for talented youth from abroad. However, the virtues of that exemption should be weighed against its costs. As a matter of policy, Congress should consider the impact on the citizenry and the promotion of U.S. workers, while it continues to evaluate immigration policies.

This issue yet again brings to the forefront the importance that tax policy has in our lives, particularly in ways that we may not readily appreciate. It also demonstrates the interaction that taxes may have with employment and immigration policies. Given the material financial risks that our social insurance systems face, our congressional leaders should openly and publicly resolve these issues and let their constituents evaluate those judgments.

In sum, this article raises an important issue that warrants attention and resolution. The institution of any one of the proposed reforms could help equalize or improve the hiring playing field for citizens and bolster the solvency of U.S. social insurance programs, while trying to balance immigration objectives. These proposals thus deserve serious consideration in current and future tax reform discussions and legislation.

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