[Congressional Record Volume 143, Number 98 (Friday, July 11, 1997)]
[House]
[Page H5136]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




 WE SHOULD NOT CHARGE GRADUATE STUDENTS TAXES ON MONEY THEY DO NOT EARN

  (Mr. DeFAZIO asked and was given permission to address the House for 
1 minute.)
  Mr. DeFAZIO. Mr. Speaker, we are hearing some creative accounting on 
the other side. They are saying American families who earn $25,000 a 
year do not pay taxes so they should not get a child tax credit.
  They do pay taxes, and they should be entitled to a credit; a rookie 
cop, a beginning teacher.
  But let us talk about real creative stuff on their side. They want to 
tax people who do not have earnings. Graduate students would have to 
pay taxes on their tuition waivers under a little provision they stuck 
into this bill.
  Now if someone were a graduate student, they would give you a stipend 
of $300 or $400 a month, but they get a $5,000 relief from their 
tuition. The Republicans are saying, ``You should pay taxes on that 
$5,000 you don't get.'' Now what kind of opportunity is that?
  This is such a bad idea that the last time this provision of law 
expired, I sponsored legislation to fix this problem, and even Ronald 
Reagan agreed that we should not charge graduate students taxes on 
money they do not earn. But the Republicans have stuck it in this bill 
to help pay for tax cuts for corporations and for the wealthy. That is 
outrageous.

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