The statistical expectation from the dataset that you link to is $86,328.67 [1]. I no nothing about US salaries, but I don't consider this value a competitive salary. Therefore, I believe the premise of the article is statically correct. Citing a few example with large salaries (Apple, Google, ...) is misleading.
Only looking at the mean does not tell the whole story. Not all companies pay their H1Bs peanuts which is what this article seems to imply.
$86K might might not be competitive for the HN crowd with their inflated egos, but it's quite high for a number that includes other industries and regions.
Tell the average American to guess what underpaid is, they're likely going to guess lower 86K. You got to wonder why these rants don't like to cite any actual numbers.
The main issue is that all of the stats are brought down by TCS/TechM/Infosys and other body shops that pay just over the 60k cutoff. The average for H1-B actual software engineers is likely around $100k in SV, maybe a tad higher as you usually don't relocate people from abroad unless they are really good.
86K may not be a competitive salary in heart of SV but it's damn competitive in the US, and around the world.
Unless you are living in NYC/SV your cost of living in the US is lower, you tax burden is lower.
86K$ is more than the vast majority of highly paid developers in Europe get.
I don't understand why Amazon/Google paying 50-60K Euros in Germany or even lower than that in other EU countries with a tax burden of nearly 50% of income is fine by some guy from India coming and working for 85K+ in the US is somehow exploitation.
Do companies take advantage of the fact that they relocate people from effectively developing nations and pay them below market rates, sure, that's business but honestly do you think anyone complains? The average indian developer with 5-10 years of experience earns between 350-500K RS a year, with the 350-400K being more common this is about 5500-6000$.
If you think that the cost of living in India is so low that it can offset the discrepancy in income then you clearly haven't spent much time in India.
Some employers might abuse H1B too much, some might even do illegal things with it, but that's the case those things are illegal, just offering a lower than average salary isn't illegal, it's not even amoral.
The point is not that is 86K is low. In fact it is an interesting salary if you consider all salaries in the US among all jobs. The point is that it is lower than US software engineer average salary. This leads to wage compression for the local population whom or their parent have been paying taxes hence the prosperity and attractiveness of the US.
Nobody says that the fault is with the Visa holder who happily work for less than average wage. The problem is with companies exploiting this law which was designed to attract best talents who wouldn't work for less than average because they know their worth.
As a foreigner, I say this is not fair to local population (including those immigrant after they obtain their permanent residency) whose wages are kept low by companies who abuse these laws.
As a side note, I've lived both in San Diego and Berlin for a short period. It's true, in Germany total deduction of salary can go as high as 40 percent. But you get full health care coverage, child care, paternity and maternity leave, free university for your children and good public transport and infrastructure. This also covers unemployment and disability insurance plus the pension.
In contrast in California, one pays as high as 33% tax rate and get a fraction of these services.
I wouldn't be tempted to change my 60K euros Berlin salary with 110K $ San Diego salary. I would have a much better life quality in Berlin.
Even if companies are paying the same as local workers, there is still the issue of the employer having so much power over the worker.
Normally jobs are a two way relationship, with either party being able to back out if things are working out. With H1B's, the employee is a lot more tied down to the company.
1- https://docs.google.com/spreadsheets/d/1f0iZ7VZkA7Th2dCE6rgD...