CEO DATELINE - Education groups sound alarm on eliminating college tax breaks
CEO DATELINE - Education groups sound alarm on eliminating college tax breaks
- November 9, 2017 |
- Walt Williams
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The proposed House Republican tax overhaul would end the tax-free status for tuition waivers used by university graduate students—a policy decision that education groups said could put obtaining a Ph.D. out of reach for many individuals.
Many universities currently waive tuition for graduate students who work as research or teaching assistants in addition to paying them a stipend. Currently only the stipend is taxed, but the House tax overhaul redefined waived tuition as taxable income. News site Vox estimated the change could raise annual taxes owed by many graduate and Ph.D. students by $2,000. The average salary of most research assistants is less than $30,000. http://bit.ly/2iIO19w
In a statement, the National Association of Graduate-Professional Students gave the GOP plan an "F."
"Given the average stipend of a graduate or professional student, the proposed policy will lead to a situation where students can barely survive on their stipends," NAGPS said. "This will also make it difficult for universities to recruit graduate-professional students." http://bit.ly/2jfvl5f
The elimination of tax-free tuition waivers is not the only concern being raised by education groups. Forty-six higher education associations listed their problems with the legislation in a Nov. 6 statement. They included provisions ending tax deductions for student loan interest, creating a 1.4 percent excise tax on institutions with large endowments, and increasing the standard deduction, which the groups said would reduce the value of giving to charity by reducing its tax benefits.
"This legislation, taken in its entirety, would discourage participation in postsecondary education, make college more expensive for those who do enroll, and undermine the financial stability of public and private, two-year and four-year colleges and universities," the groups said.
The American Council on Education, American Association of Community Colleges, Association of American Universities and National Association of Independent Colleges and Universities were among the signatories. http://bit.ly/2hnlklP
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