In our company we have struggle to get applicants to apply. Junior, or Senior. May be it's our company, but in general I would agree that H1B should be meant for experienced personal. What is happening now, companies are getting qualified labor (years of experience, Masters/Phds) from overseas for $60K. Nice and shiny. My point is that this, most likely, will not open more entry level positions, or make companies willing to pay more for entry level engineer.
Again, my understanding of IT market, is that shortage of candidates Silicon Valley, and not only, so complains about, is because there are NO local candidates willing to take that job, and not because "all those indians steal our young grads jobs". If by saying "So you're saying the incentives would work as intended" you mean minimum salary wage will raise because of that, don't think so.
It's hard to predict what will really happen. Some businesses will hire more IT personal overseas, to amortize the costs and avoid H1B application at all. Some will start really searching for a local talent with higher price (that's what this idea is meant to do I guess). But considering that IT reports constantly shortage on candidates, a big gap indeed, regardless top notch universities, makes me think it's not about problem of lack of open positions, what this new idea aims to solve, it's about a will to do that job or not. Still, I'm talking about IT sector. In other areas of life things may be way different.
I think it's $130K, which is 2x as much as before. It's senior level salary in IT (and I think for lawyers and MD's it's not starting salary either), in some cases/states Principal level. I would not invite H1B on that position, I would get one from local market for that amount of money. If you follow the line: it simply says do not use H1B more. Plus, what international student will do once he completes the college, and with quarter of million in debts (say Bachelor only) ? As is now, H1B. Will you hire college fresh grad for 130K ? Don't think so. So...who will come to the college from overseas to study and brig their passion and ideas on this land ? This is USA, this IS a country made, constructed and developed by excellence and hard work of immigrants with their hopes and dreams. Cutting that idea off, putting the country and society in the mood of "preservation", could result in dangerous outcome, as society is not ready for that. This is not Europe and will never be, the rules that work there are not applicable on this land. There is no a notion of "nation" in USA, there is no such thing. It's just a colony of immigrants moved away from their homes to build something they could not there. This is a dream land, this is an opportunity land and should remain such for everyone.