Minor changes to the Senate tax bill meant to benefit students and teachers haven’t lessened the concerns of education groups who say tax increases in the measure would lead to fewer services and financial aid for students.
The latest version of the Senate bill would double the amount of deductions teachers can take for purchasing supplies and equipment for their classrooms from $250 to $500—a deduction that was eliminated in the House bill.
The Senate bill would also give tax-exempt status to student loans that were forgiven in cases where a borrower died or was disabled.
However, the bill keeps numerous provisions K-12 schools and colleges have railed against, including a tax on endowments that would levy a 1.4 percent tax on net investment income for universities with more than 500 tuition-paying students and an endowment of at least $250,000 per student.
Steven Bloom, director of government relations with the American Council on Education, said many schools use their endowments to help fund financial aid programs and the provision was “bad policy and terrible precedent.”
“All it would do as structured is send money from colleges and universities—which they would otherwise use to help students and provide education resources to them—and send it to Washington,” he said.
Colleges, including those affiliated with the Association of Public and Land-grant Universities and the Association of American Universities, are also concerned about being taxed for the income made licensing the use of their logo and school name.
“The ultimate impact of these measures would be fewer resources for public universities to devote to education, research, and community engagement,” the APLU wrote in a letter to Senate Finance Committee Chairman Orrin Hatch (R-Utah) and ranking member Sen. Ron Wyden (D-Ore.), earlier this week.
Teachers unions and other advocacy groups for K-12 schools said the elimination of state and local tax deductions in the Senate bill would hurt state and local revenue which, in turn, could mean less money for public schools. As written, the bill would potentially risk funding for 370,000 education jobs, according to an analysis from the National Education Association.
To contact the reporter on this story: Emily Wilkins in Washington at firstname.lastname@example.org
To contact the editor responsible for this story: Paul Hendrie at email@example.com
Copyright © 2017 The Bureau of National Affairs, Inc. All Rights Reserved.
All Bloomberg BNA treatises are available on standing order, which ensures you will always receive the most current edition of the book or supplement of the title you have ordered from Bloomberg BNA’s book division. As soon as a new supplement or edition is published (usually annually) for a title you’ve previously purchased and requested to be placed on standing order, we’ll ship it to you to review for 30 days without any obligation. During this period, you can either (a) honor the invoice and receive a 5% discount (in addition to any other discounts you may qualify for) off the then-current price of the update, plus shipping and handling or (b) return the book(s), in which case, your invoice will be cancelled upon receipt of the book(s). Call us for a prepaid UPS label for your return. It’s as simple and easy as that. Most importantly, standing orders mean you will never have to worry about the timeliness of the information you’re relying on. And, you may discontinue standing orders at any time by contacting us at 1.800.960.1220 or by sending an email to firstname.lastname@example.org.
Put me on standing order at a 5% discount off list price of all future updates, in addition to any other discounts I may quality for. (Returnable within 30 days.)
Notify me when updates are available (No standing order will be created).
This Bloomberg BNA report is available on standing order, which ensures you will all receive the latest edition. This report is updated annually and we will send you the latest edition once it has been published. By signing up for standing order you will never have to worry about the timeliness of the information you need. And, you may discontinue standing orders at any time by contacting us at 1.800.372.1033, option 5, or by sending us an email to email@example.com.
Put me on standing order
Notify me when new releases are available (no standing order will be created)