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This only applies if deportation is a threat to you. I am a H-1B employee and I have absolutely no problems going back to my home country in an instant.

I don't know if that is the reason but my salary is definitely not discounted compared to my American co-workers.

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But a lot of people from really screwed up places don't have that privilege ... there are many that would rather take a 3-$5k salary haircut than go back to their home country for any reason, because there is nothing but hard living there.

You're right. Negotiating from strength requires being willing and able to walk away.

Exactly - the issue is that "walking away" has a very literal interpretation in the context of losing visa sponsorship. You'll be "walking away" to the airport, and leaving behind an established life, your friends, colleagues and potentially even family members.

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