Universities, companies lobby for tax-free tuition help

The Wall Street Journal 15 December 2017

Universities and companies are joining forces to lobby Congress to keep a tax provision that allows employers to give staff as much as US$5,250 in yearly tax-free tuition help, writes Melissa Korn for The Wall Street Journal.

The tax-overhaul package passed by the Senate earlier this month includes the provision, which has been part of US tax law since the late 1970s. The House version would require employees to pay taxes on the benefit for the first time. Congressional leaders are working to send a final bill to President Donald Trump by Christmas.

Hewlett Packard Enterprise Co, Starbucks Corp and others say offering tax-free tuition assistance makes it easier for them to keep and train employees. Universities say they could lose thousands of students if the tuition programme is taxed. The nation’s economic development would be stunted if employees shy away from pricey training programmes, they say.
Full report on The Wall Street Journal site

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