[Congressional Record Volume 163, Number 195 (Thursday, November 30, 2017)]
[House]
[Page H9525]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
DECRYING GRADUATE STUDENTS' TUITION ASSISTANCE CLASSIFIED AS TAXABLE
INCOME
The SPEAKER pro tempore. The Chair recognizes the gentlewoman from
Wisconsin (Ms. Moore) for 5 minutes.
Ms. MOORE. Mr. Speaker, I rise today to decry a provision in this tax
bill that would amount to shocking tax increases of thousands of
dollars for struggling graduate students by reclassifying their tuition
assistance as taxable income.
These students provide research and teaching services as work to
offset tuition. I mean, we are talking about assistants in the dorms,
teaching assistants for undergraduate courses, researchers in
laboratories--all who contribute to universities for quite modest
stipends and tuition credits to avoid going further into debt and to
support themselves while completing their master's degrees and Ph.D.'s.
Taxing this so-called income would impose a profoundly negative
impact on education. Schools across the country could lose half their
current graduate students, and it would diminish the number of students
who would even consider graduate school in the future.
Mr. Speaker, what is to become of the vital research and development
in the fields of medicine and engineering and agriculture and
information technology--things that have led to innovation and
invention, things that have truly made America great--with this tax
provision?
An example from my very own alma mater, Marquette University, raises
the problems with parents. There is a maintenance mechanic who has
three--three, triplets--college-age students. He receives $40,000 of
tuition assistance for each of these students. I mean, for real, Mr.
Speaker, we are going to deem $120,000 income to this maintenance
person?
Be for real. My constituent, Tim, writes:
As a graduate student in the third year of a Ph.D. program,
I am married, have a 4-month-old. My wife works full time as
a high school teacher. My research focuses on investigating
how persons who have suffered from a neurological disease
such as a stroke or spinal cord injury are able to move. This
tuition waiver is the only reason I can afford graduate
school and do the research I am doing to help the disabled.
If this becomes taxable income, my wife and I would move
into a higher tax bracket, and my tax liability would
increase roughly 40 percent, without a single dime of an
increase in income with which I could pay that. This equals
roughly $1,300 per month of taxes.
At the University of Wisconsin-Milwaukee, also in my district,
graduate student Shandra is finishing her master's in library and
information science. Under the Republican House bill, Shandra's income,
in the eyes of the government, would effectively double.
Now, you know, doubling the standard deduction, letting people file
on a postcard will not offset the draconian tax cuts that these
graduate students would experience. Taxing tuition credits would hurt
lower and middle class, hardworking citizens who rely on this benefit
to help them and their families achieve the American Dream.
I urge my colleagues and people in the public, Mr. Speaker, not to
fall for this trick, and I urge my colleagues in the Senate to oppose
this harmful bill.
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