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In fact cracking down on H1-B should be GOOD for silicon valley. As it will open a lot more slots for legit companies applying for real talent.

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I'm confused, how is a company who hires H1-B visa holders "illegitimate"? Maybe I'm taking this too literally...

Not the OP, but I read it meaning "companies applying with a legitimate need for talent". Here are few examples from the past few months where this was not the case:

https://www.justice.gov/usao-edva/pr/couple-pleads-guilty-20...

https://www.justice.gov/usao-nj/pr/virginia-immigration-atto...

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