Trump announces new U.S. luxury visa programs: Gold Card and Platinum Card

Key Concepts:

• Gold Card Visa: $1 million individual / $2 million corporate, US residency in "record time," corporate card transferable.
• Platinum Card Visa: $5 million, allows 270 days in the US without paying taxes on overseas income.
• H1B Fee: New $100,000 fee.
• EB-1, EB-2, and EB-5 Programs: Existing visa programs, EB-5 requires $1 million investment and creation of 10 jobs.
• Taxation of Foreign Income: US citizens/residents taxed on worldwide income; foreigners in US >183 days (using IRS formula) also taxed.
• Commerce Secretary Howard Ludnick: Announced the new visa programs.

New Luxury Visa Programs: Gold and Platinum Cards

President Trump announced two new luxury visa programs: the Gold Card and the Platinum Card. These programs aim to attract foreign nationals to invest in the US in exchange for residency and tax benefits.

• Gold Card:

  • Cost: $1 million for individuals, $2 million for companies.
  • Benefit: Grants US residency in "record time."
  • Corporate Card: The $2 million corporate card is transferable between employees.
  • Replacement: The Gold Card is intended to replace the EB-1 and EB-2 programs. It was initially suggested it would replace the EB-5 program.
  • Attractiveness: The Gold Card is more attractive than the EB-5 program because it does not have a job creation requirement.

• Platinum Card:

  • Cost: $5 million.
  • Benefit: Allows foreign nationals to spend up to 270 days in the US without being taxed on their overseas income.
  • Tax Implications: Currently, US citizens and residents are taxed on their worldwide income. Foreigners present in the US for more than 183 days during a three-year period (using a specific IRS formula) are also subject to tax on their overseas income. The Platinum Card extends this tax-free period to approximately 9 months (270 days).

Revenue Generation and Economic Impact

Commerce Secretary Howard Ludnick stated that the new $100,000 H1B fee, along with the Gold and Platinum Card programs, are expected to generate $100 billion in revenue. This revenue will be used to lower taxes and pay down the national debt.

Comparison to Existing Visa Programs and Global Investment Visas

The Gold Card is positioned as a replacement for the EB-1 and EB-2 programs and potentially the EB-5 program. The EB-5 program requires a $1 million investment and the creation of at least 10 jobs. The Gold Card offers a similar cost without the job creation requirement, making it potentially more appealing to investors.

The speaker notes that the $1 million price point for the Gold Card is relatively cheap compared to investment visa programs in other countries. Examples given include:

• Singapore: $7 million
• Samoa: $1.4 million
• Hong Kong, El Salvador: Programs more expensive than the US Gold Card.

Screening and Eligibility

The details regarding the screening process for applicants are currently unknown. Ludnick and President Trump stated that the programs are intended for "extraordinary people," but there are no specific investment or job creation requirements. The promise of "record time" processing suggests a potentially streamlined or less rigorous screening process.

Conclusion

The introduction of the Gold and Platinum Card visa programs represents a significant shift in US immigration policy, focusing on attracting high-net-worth individuals through investment. The programs aim to generate substantial revenue for the US government while offering attractive residency and tax benefits to foreign nationals. The lack of specific details regarding screening processes and the potential impact on existing visa programs remain key areas of uncertainty.