New Tax Plan Takes Aim at Universities
As many of us have heard about this week, the new tax bill is being heavily debated. There are two plans that under consideration a House and Senate version. The House tax bill "Would tax the value of college tuition benefits conferred on thousands of university employees" (Green). This bill would greatly change how all of us pay for our education. "A large percentage of undergraduates and graduate students would see their tax bills increase, some dramatically (Green).
In addition to campus employees, many doctoral students would see huge tax increases, since tuition tat universities waive for them in exchange for working on campus as researchers and teaching assistants would be deemed taxable income. At expensive research universities such as Stanford and Harvard, the new tax bills could swamp graduate-student stipends. (Green)The Senate bill is a little less aggressive with universities. While this affects all areas of study it will have a significant impact on STEM degrees, the article gives an example of a student that if passed will be pushed out of grad school. A loss of doctoral students will push us further behind in STEM technology, and with the push to maintain jobs in the United States this seems counterintuitive to that objective.
A Republican was quoted in opposition to these harsh reforms as suggesting that tax reforms should be looked at from a different angle: "We can make an even bigger impact by taking this opportunity through tax reform to confront the impending student debt crisis and to address access to higher education." Rodney Davis (R, Illinois)
Link to full article:
House G.O.P. Tax Writers Take Aim at College Tuition Benefits
It is difficult to see any overall good in the proposed measure to tax college benefits. It sounds like the House is not factoring in how this aspect of the tax plan will affect the rising student debt crisis in America and disparities in access to higher education, not to mention the setbacks this measure will create in any recent advances the country has made to increase the number of STEM graduates where having an advanced degree is essential to a math or science career. I believe some sort of tax overhaul is necessary, but higher education is the wrong area to start taxing. Protecting higher education should be viewed as an investment in the future generations of tax paying Americans.
ReplyDeleteHi Jennifer,
ReplyDeleteI enjoyed your blog and found your take to be interesting and insightful. The tax bill seems to take aim at students and more specifically, graduate and doctoral students that receive funding through their respected schools. I think this might make undergraduate students second guess or contemplate furthering their education to obtain a higher degree, which is needed in companies and to teach at universities.
Great blog!
Hey Jennifer! The tax bill is being heavily debated for multiple reasons because the powers that be on Capitol Hill and in the White House are incredibly out of touch with the world. Analysts have proven that the tax bill will benefit the rich rather than the middle class and will actually accomplish the opposite of what legislators said it would. I believe that this bill is meant to discourage higher education because education is not something valued by the government as of this moment. Trump has made significant cuts to Public School Systems as well as Public Broadcasting. Not a very good use of brain power in my humble opinion.
ReplyDeleteHello Jennifer!
ReplyDeleteThis was a very interesting post. I actually did not know very much about this new Tax bill. Unfortunately, I think this new bill may make upcoming students not want to go to University due to the cost. Additionally, having Besty DeVos -- someone who knows nothing about education making decisions that pertain to education is also not very helpful. Great post!
Great blog!
Hey Jennifer!
ReplyDeleteI actually didn't really know this was going on and didnt know as much as I should. I think the tax bill is of course aimed at students, especially the upcoming ones regarding the cost of it. I must agree with the person who commented above me, someone who knows nothing about education cannot be helpful to these events.