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Why can't these remotest jobs just be done anywhere in the world? Why restrict it to people who are citizens/residents of the US?

They can and already are suggesting this is not a real threat. And annoyingly, the jobs that could be outsourced, were already.

And that is with corporations playing with the existing visa system AND illegal immigration.

In short, remote addresses a lot of issues for an average worker. It does mess with existing system for corps.