2/ this would mean only bigger software companies would get a chance and people would willing to work in startups will stand lower chance.
What we need is a way to avoid abuse by body shops.
> 1/ this will incentive IT and software jobs and marginalize other fields with lower pay (physics, mechanical, chemical, etc).
Why!? If those people are important they can be paid well too. There are plenty of chemical engineers that make good money.
> 2/ this would mean only bigger software companies would get a chance and people would willing to work in startups will stand lower chance.
Startups can pay too. In any case, most startups don't sponsor H1Bs because of the uncertainty associated with the process.
Not all industries can pay as much as software. A PhD with an extra 5-10 years of industrial experience may get a 200K salary in biotech, often less. A CS bachelor with 1-2 years of experience would get that 200K. Pay doesn't always equal the value of your contribution, especially if you compare them across different fields.
The government shouldn't fight for lower paying jobs at the expense of higher paying ones. There are a limited number of visas granted each year, and higher pay is a signal from the market that a particular position is _actually_ more difficult to fill. If startups can't afford top talent, then surely they can hire American workers instead?
Value and pay aren't the same across industries. Someone can still contribute the same value but the field they are in simply doesn't have the economic profitability required to pay them the same way software does. In fact, software is the anomaly in compensation. Making a policy that benefits only one type of industry over everything else is simply bad policy.