Outsourcing needs to be taxed

I live in a state that is having budget problems. The state government is Democratic, but they don't have a backbone. All of their "solutions" take the form of budget cuts for the needy and for the schools. The state also has no income tax. Meanwhile a large employer here signed an outsourcing contract for $17 million in jobs to an Indian contract agency. This means 600 H1-B contractors will be brought into the state from India for 6 month contracts. Meanwhile, our local students are graduating from college in six weeks. The H1-B program is supposed to recruit people for jobs Americans can't do. But with all these kids graduating, can anyone really state that they can't find programmers and testers. Also, the wives of the H1-Bs are getting secretarial and data entry contracts, taking the jobs away from the urban women. Consider the flow of money out of the state: half of the money goes for the overhead to the agency, so it goes right to the Indian company as income. The wages are paid in the US but the state has no income tax, so it receives no revenue. Federal tax does apply. The state has sales tax and property tax, but temporary workers live near the company or take the bus, so they don't buy a house or a car. The furniture is bought used at the Goodwill store or through the internet, so there is little, if any, sales tax revenue. The earnings are saved and taken home. So basically the money flows right out of the US. The state gets essentially no tax revenue. Meanwhile, these people are using the public services just like everyone else: police, fire, public health, etc. The answer is to place a tax on this outsourcing. Even a 10% tax would have brought the state $1.7 million in revenues on this contract alone. Also, there should be investigations of why the company is not going to the colleges and hiring our local graduates when the H1-B program is supposed to be for the case in which Americans can't be found. Please note: this is *not* about hatred of immigrants. There should be no hatred of immigrants. The immigrants are very fine people. People who moved to the US in recent years are getting laid off too. It is completely a matter of numbers and money. We can't afford to bring in all these programmers and testers from India when Americans are unemployed and can do these jobs. So the other question is how to we get our elected officials to have a backbone and stop doing the bidding of the corporations.