H1-B workers pay federal income tax as well as state taxes. They are not cheaper than US citizens when all costs are considered. I employed a number of highly skilled workers here on a VISA. There are simply more IT and numbers people than what was available to me otherwise. The number of US citizens in similar jobs outnumbered VISA workers by 20-1 in my organization. Simply backfilling. One of the issues with H1-B workers is, that if the project took many years to complete, you couldn't depend on them to carry over knowledge due to their temporary status.
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