Posted on 11/19/2017 5:33:48 AM PST by conservativehusker
“”would essentially be taxed on money they never receive.””
Kind of like the education they never receive, right?
These vast majority of tuition waivers are for PhD programs in engineering and the hard sciences in case anyone here is thinking its for basket weaving or a ‘studies program’. This sounds like a great way to handicap one area where the usa has a clear advantage and is a key building block for future economic growth.
Normally the student receives the tuition waiver plus a stipend for teaching courses and conducting research. The stipend (normally around 30-35k) is already taxed as income. The tution waiver is not. They can offer tuition waivers because the university is getting paid in one way or another to perform the research. A portion of the the students who don’t go to industry end up as professors in engineering and the hard sciences which further entrenches the usa’s competitive positioning in hard sciences and engineering and conduct valuable research.
I got taxed for employee provided tuition assistance - how is their waiver any different? They are receiving a benefit of value - should one be taxed and another not just because the one is a pass through?
yet ANOTHER of the many stupid, counterproductive provisions of the RINO/GOPe fake reform tax bill that directly penalize people low on the totem poll.
Answer to last comet us no they don’t
On your paycheck and the accompanying receipt there is a line item called an “imputed tax”. It is a tax I pay because I have health insurance above some defined standard.
How is that different than what these students receive as essentially direct remuneration? The health insurance is there if I need it but if I am being taxed on the availablity, not the direct benefit paid on my behalf.
This is direct payment that has a direct value and they should pay taxes on it if we are going to be equitable.
I paid my tuition after taxes and others pay taxes on the the tuition reimbursement their employer offers.
Not getting any sympathy from me. Let them pony up like everyone else.
So why couldn’t the universities restructure their graduate student researchers compensation so they are being provided a scholarship and then reclaim the scholarship to pay that graduate student’s tuition? Or are graduate student scholarships treated differently than undergraduate scholarships and subject to income taxes as well?
Posting drunk again? LOL
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