November 10, 2017
current form, key provisions of the Tax Cuts & Job Act currently under
review in the House of Representatives would have a significant negative impact on our country’s college and
university students, the national economy and the future of our country’s
position as a global leader in science and technical innovation. The proposed
tax bill will make college and graduate school more expensive, threatening the
ability of future innovators to pursue advanced education.
graduate students currently receive some form of tuition reduction, including
over 80,000 graduates in STEM programs. Provisions in the tax bill to tax these
tuition waivers would significantly increase their tax burden, sometimes by
thousands of dollars. Taxing students’ tuition waivers, along with the proposed
elimination of the Student Loan Interest Deduction, threatens the ability of
many of our brightest students to pursue graduate studies, essentially halting
the careers of many future innovators before they get started.
This is only
a sample of the damaging provisions in the House bill: for instance, by reducing
the number of people who will itemize charitable deductions, the bill also
threatens the financial stability of colleges, universities, and the non-profit
organizations who support their research and their students.
everyone to pause and reflect on how this will impact innovation in our
country, America’s global leadership position, and the American economy, all in
just a few years. Under these provisions in the proposed tax plan, our
country’s future no longer looks so bright.
reform acts are far from finalized: the House plan is still undergoing review,
and the Senate has outlined its own version which would leave tax benefits for
students and universities untouched, but still threaten charitable giving. So please
join me in contacting your members of Congress without delay, to make our
voices in support of education heard. Demand a better deal for our students.
Demand a better deal for the future of science and innovation in our country."
Baker Kosak, president, Fannie and John Hertz Foundation