OPT Fair Tax Act
Taxes on International Student Work Programs
This bill was recently introduced in the Senate and is currently being reviewed by the Committee on Finance. It is in the early stages of the lawmaking process and is considered active. There are no upcoming votes scheduled at this time.
Legislative Progress
This bill addresses a specific tax exemption that is often debated along party lines. It lacks the broad support usually needed to pass through the Senate Finance Committee.
Key Points
- This bill would require international students working in the U.S. through the Optional Practical Training program to pay Social Security and Medicare taxes. Currently, these students are often exempt from these taxes for their first few years of work after graduation.
- The change would affect thousands of foreign graduates from U.S. universities who stay in the country to work in fields like technology and engineering. It would also require the companies that hire them to pay their share of these payroll taxes.
- Supporters argue this makes hiring more fair for American workers. Right now, hiring an international student can be about 8 percent cheaper for a company because they do not have to pay the employer portion of Social Security and Medicare taxes.
- If passed, the new tax rules would start in the first month after the bill becomes law. It would only apply to graduates working in the training program, not to students who are still attending classes.
Impact Analysis
Govbase has not yet run an impact analysis on this legislation.
Milestones
Read twice and referred to the Committee on Finance.
Sent to a congressional committee for expert review. The committee decides whether this bill moves forward.
Introduced in Senate
The bill was officially filed and given a number. It now enters the legislative queue.
Votes
No votes have been recorded for this legislation yet.
News
No related news coverage found for this legislation yet.
Source Information
Document Type
Congressional Bill
Official Title
OPT Fair Tax Act
Data Sources
Sponsor
Analysis generated by AI. Always verify with official sources.