About that #GOP tax plan ...
About that #GOP tax plan ...
Originally shared by Ethan Siegel
"Despite earning $23,000/year, you'd pay taxes on $40,520 or $57,914 at a public University, and despite earning $32,500, you'd pay taxes on $81,440 at a private University. For this last figure, this would result in a higher tax rate than anyone else in the nation pays. These numbers represent increases in taxes of $2,628, $6,193, and $10,650, respectively, on these hypothetical graduate students."
The way that graduate school works for most of the 3 million Americans currently enrolled is that they work as either a teaching or research assistant, get a tuition waiver, and support themselves with a small stipend. Earn $23,000/year, and you pay taxes on $23,000/year. It's not a lot of money, but it's fair. The tuition waiver, on the other hand, is money that the University pays directly to itself; it's money that you never see. At some Universities, the tuition waiver is valued at up to $50,000. And one of the biggest changes to the tax code under the new GOP proposal is that all of a sudden, your tuition waiver would be treated as taxable income. For a 1st-year student at University of Florida, your tax burden would jump from 6.2% to 33.1%; for a student at Princeton University, your tax burden would change from 8.8% to 41.9%. In other words, graduate students would become the most heavily-taxed group of Americans of all.
Is it an intentional part of the GOP tax plan to destroy graduate education? I don't have the answer to that, but if you have any interest in higher education, you'll want to know about this for sure.
https://www.forbes.com/sites/startswithabang/2017/11/07/the-gop-tax-plan-will-destroy-graduate-education/
Originally shared by Ethan Siegel
"Despite earning $23,000/year, you'd pay taxes on $40,520 or $57,914 at a public University, and despite earning $32,500, you'd pay taxes on $81,440 at a private University. For this last figure, this would result in a higher tax rate than anyone else in the nation pays. These numbers represent increases in taxes of $2,628, $6,193, and $10,650, respectively, on these hypothetical graduate students."
The way that graduate school works for most of the 3 million Americans currently enrolled is that they work as either a teaching or research assistant, get a tuition waiver, and support themselves with a small stipend. Earn $23,000/year, and you pay taxes on $23,000/year. It's not a lot of money, but it's fair. The tuition waiver, on the other hand, is money that the University pays directly to itself; it's money that you never see. At some Universities, the tuition waiver is valued at up to $50,000. And one of the biggest changes to the tax code under the new GOP proposal is that all of a sudden, your tuition waiver would be treated as taxable income. For a 1st-year student at University of Florida, your tax burden would jump from 6.2% to 33.1%; for a student at Princeton University, your tax burden would change from 8.8% to 41.9%. In other words, graduate students would become the most heavily-taxed group of Americans of all.
Is it an intentional part of the GOP tax plan to destroy graduate education? I don't have the answer to that, but if you have any interest in higher education, you'll want to know about this for sure.
https://www.forbes.com/sites/startswithabang/2017/11/07/the-gop-tax-plan-will-destroy-graduate-education/
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