Let’s say that an H1B cost $150k today. If a large enough tax was imposed, the companies are still paying $150k, but $75k of that is a tax, and infosys is getting the other $75k, paying the H1B just $50k. Now, a US citizen would have $150K to pay his/her yearly expenses, while the H1B would only have $50k. The H1B wouldn’t be able to afford a $3000 apartment in the bay and would be forced to share a room. That would then drive down demand, reducing housing costs.
I am very confused about your post. Are you saying that an engineer receiving $150k in base pay today, will suddenly work for $75k tomorrow? Are you also suggesting that there will be two class of engineers, one getting paid 75k and another 150k in the same location ?
a) are underpaid indentured labor
b) singlehandedly responsible for high Bay Area rents (presumably because they make so much money)
I'm sorry, I really don't follow any of this logic.
How does falling real estate demand and cheaper rent force H-1B folks to live 4 to a room? Isn't it cheaper for everyone in that case?