On November 16, the U.S. House of Representatives passed H.R. 1, the Tax Cut and Jobs Act with a vote of 227-205. The Graduate Student Association at the University of South Carolina is disappointed in the outcome of the vote and stands firmly opposed to the provisions in this legislation that are detrimental to higher education. There are many provisions within this bill that will make higher education significantly more expensive for graduate students. These provisions are:
— Eliminating the tax-free nature of tuition remission and counting “Qualified Tuition Reduction” or tuition waivers as taxable income, resulting in an increase of tax liability on graduate students,
— Eliminating the student loan interest deduction,
— Eliminating the deduction for employer-provided education assistance, and
— Eliminating tax credits such as Lifetime Learning Credit and Hope Scholarship that graduate students depend on, and consolidating them into one American Opportunity Tax Credit.
If implemented, these provisions will have a detrimental effect on graduate students and institutions of higher education. Graduate students, who already live on limited financial resources, will be forced to spend a large portion of their stipends on taxes and will have to take on more debt to afford graduate school. The increased costs will make the reality of graduate school unattainable for many, which would also hinder our institutions of higher education from being able to attract the best and brightest talent, both domestically and internationally. Ultimately, this legislation will disincentive and limit students from pursuing advanced degrees, stymie innovation and make the U.S. less competitive in the global economy.
The impact of the Tax Cuts and Jobs Act will be felt by universities and graduate students on many levels. Ultimately, we ask for your support for the continued improvement of the American higher education system. We encourage you to actively participate in the #ReworkTheReform campaign to continue highlighting the importance of graduate education by:
— Calling upon members of the Congress to re-evaluate the consequences of these provisions and recognize the devastating impact this will have on higher education,
— Publicly opposing these provisions of the bill that will negatively affect the entire higher education community,
— Sharing how the reform will affect you as graduate student on social media using #ReworkTheReform, and
— Signing the National Association of Graduate-Professional Students petition calling for congress to remove provisions increasing the tax burden on graduate students and other students higher education from the Tax Cuts and Jobs Act.