President Trump recently proposed a “gold card” aimed at high net worth immigrants, which would sell for $5 million. Tyler Cowen has an article in Bloomberg that discusses the pros and cons of this proposal.
Cowen believes that the gold card idea is a good one, both in terms of generating government revenue and providing opportunities for wealthy prospective immigrants. However, he also warns that the US must be careful not to limit other, more affordable avenues for people to come and work and live in the country.
While Cowen sees advantages in the proposal, he slightly disagrees with Trump’s estimate of selling one million gold cards. Trump believes that selling one million gold cards could bring in $5 trillion, as companies would also buy them to bring in talented workers. However, another Bloomberg piece suggests that the estimate is exaggerated, with estimates of only 50 to 200 people applying for the program.
Cowen points out that under current law, there is already a path to residency and citizenship through the EB-5 program by investing about $1 million. This program offers an 80% discount compared to the gold card proposal and benefits the US economy by creating new jobs.
It is debated whether many people who can afford a $1 million investment can also afford a $5 million gold card. While some argue that there are more households with $10 million in wealth than $50 million, indicating potential interest in the gold card, others suggest that the high price tag may limit the program’s appeal.
The estimate of 800 gold cards being sold annually is based on various factors, including the popularity of the EB-5 visa, backlog of applications, and the distinction between investment-based visas and flat fee visas. The proposed policy to award green cards to foreign graduates of American colleges and universities is also considered as a way to attract talented individuals.
In conclusion, while the gold card proposal has its advantages, the actual number of cards sold may not reach the optimistic estimates provided by Trump. It is essential for the US government to carefully consider the implications of such a program and ensure that it complements existing immigration pathways.
