The United States is considering tightening rules around the F-1 visa Optional Practical Training (OPT) program by introducing a special tax on students working under this visa and ending their current tax exemptions.

Arkansas Senator Tom Cotton has introduced the ‘OPT Fair Tax Act’ in the US Congress. If passed, the bill would end FICA (Federal Insurance Contributions Act) tax exemptions for F-1 OPT and STEM OPT workers.

The FICA tax is a payroll tax that funds Social Security and Medicare. Normally, both employers and employees pay 6.2% towards Social Security and 1.45% towards Medicare.

Under current law, companies hiring OPT students don’t pay this tax, and neither do the students, as per IRC 3121(b)(19) and IRS 26 CFR § 31.3121(b)(19)-1, which exempt temporary non-immigrant workers

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