Imagine being taxed on momey you never receive
Where are you supposed to come up with the money to guve the govt?
I have an idea
Lets give every American a waiver on something - then tax it
The 0.05% can now join the small percentage of the self employed who pay the unemployment tax without the possibility of making a claim.
I paid for my under graduate and graduate studies out of my own pocket with after tax money from my salary.
These tuition wavers are essentially a gift to these students who should be paying taxes on the imputed value, like the imputed value tax on my healthcare benefits.
Company provided life insurance that is beyond certain limits as well as health insurance considered to luxurious are taxed. Students can suck it up
>>graduate students receiving a tuition waiver — about 0.05 percent of the U.S. population — would essentially be taxed on money they never receive.
My employer has a program where people can give you little awards for various good deeds and the awards give you points that you can use to buy stuff. Federal tax law forces my employer to collect income tax on the value of the item received. If I have to pay income taxes at my highest rate on a folding chair, then free tuition should definitely be taxed as income!
Obviously our “representatives” did almost nothing for months and the lobbyists gave them a wish-list and our people (ha!) in Washington cobbled together this horrible legislation so they would have something to vote on at the last minute. Now they have something for the people who matter - the donor class.
It has always been the case where you owe taxes on a gift—and that is what a tuition waver is.
On the other hand, with the standard deduction increasing, I do not anticipate that many students will see their tax burden increase.
When I was in grad school, my tuition and all student fees were covered, and I received a stipend, as well. The stipend, at least, was counted as income. The rest of those benefits would have added another $10k or so to my income.
nope - because her deduction doubles
this is just a scare story by bloated universities
Subsidies are money.
I am not in favor of the tax code rewarding the extravagant costs of college tuition - which is what net affect of the tax code & federal subsidies have done, with inflation in those costs far and away exceeding inflation in every other sector of the economy. Academia has not had to worry about it’s ever increasing costs, it discovered it could sell the problem as one of “helping the students” and politicians from every party have rewarding it by removing pressure from academia’s customers to lower its costs.
How should we REALLY be helping “students”? We should be demanding not more subsidies and tax deductions, but demanding colleges figure out how to lower what they are charging.
Can you say “Value Added Tax?” Sure I knew you could.
All people who are doing well, should pay taxes on their income. If a grad student’s only sources of income is meager earnings plus scholarship, that person wouldn’t pay taxes. But, if a grad student has lots of income, then he or she can and should pay taxes like everybody else. Why should a waitress pay taxes on tip income if a grad students making more than her, are getting a waiver?
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.