A last-minute fight against graduate student tax hike

University leaders and education groups are urging the United States Congress to reconsider provisions in the House GOP tax bill that would mean huge tax hikes for graduate students – that they warn could cripple graduate education in America – writes Benjamin Wermund for Politico.

Under the House plan, HR 1 (115), tuition discounts that universities offer to graduate students would be taxed as income, on top of the stipends the students make working as teaching or research assistants. At some universities – where the tuition breaks run upwards of US$40,000 – that could more than triple students' taxable income, causing some to spend huge portions of their stipends on massive tax bills. The plan would also eliminate a lifetime learning credit worth about US$2,000 that many grad students depend upon. The Senate version does not include the provision.

The issue has emerged as a priority for many in higher education – especially at major research universities that rely on graduate students. University leaders, lobbying groups and unions are making a final push to convince the House to ditch the provision, but are seeing little traction.
Full report on the Politico site