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[Fwd: US Congress threatens grad student tax incentives]
I guess this is of great concern to Vietnamese NCS/DHS. Exercise your
rights, write/phone your congressmen and senators.
Rgds,
HL
> -----Original Message-----
>
> The National Association of Graduate and Professional Students (of
> which
> the OSU Council of Graduate Students is a member) sent out the
> following
> press release that deserves wide distribution. Please read it and
> contact
> your Congressional delegation Tell them that the current tax bill is
> unfair.
>
> Just as an example...out-of-state tuition for a TA/RA working at OSU
> in
> 1996 was $4074 for each of the Winter, Spring, and Summer quarters,
> and
> $4277 for the Fall quarter. That's $16,499 that would be have been
> considered TAXABLE INCOME under the new tax proposal! You can get out
> your
> old tax form and work out the math. However you figure it, it's ugly
> and
> MUST NOT become law.
>
> Questions? Contact me directly or contact the Council of Graduate
> Students (2-4380)
>
> The Ohio State University 329 Park Blvd.
> Lawton.6@osu.edu Worthington, OH 43085
> 292-6031 (w) 841-1157 (h)
>
> ----------------------------------------------------------------------
> -
>
> ALERT
>
> 6/13/97
>
> Tax Scenarios Show Loss of Section 117d
> Could Increase Grad Student Taxes by up to 1000%
> or more than $500/month
> SEVEN STUDENT TAX RETURNS BELOW
>
> Washington, DC . . . The House Ways and Means Committee has voted in
> favor
> of a tax bill that includes among its provisions a tax increase on
> graduate teachers and researchers of up to 1000% (one thousand
> percent).
> In a vote strictly on party lines, the Committee approved the tax
> proposal
> originally offered by Chairman Bill Archer (R-TX). Quick surveys done
> by
> NAGPS have concluded that the tax proposal would dramatically
> increases
> tax burdens on graduate students making less than $15,000 per year.
>
> Among the various changes to the tax code, the Chairman's proposal
> would
> eliminate Section 117d of the Internal Revenue code. Section 117d
> currently protects from taxation the tuition waivers often granted by
> universities to graduate teaching and researchers in return for
> teaching
> up to 40% of the courses on some of the nation's largest university
> campuses.
>
> Because the value of tuition waivers often exceeds stipends also paid
> to
> TAs and RAs, counting those waivers as income has the potential to
> increase taxes by thousands of dollars per student per year. Seven
> student scenarios (listed below) illustrate how some students will pay
> 1000% (one thousand percent) more in taxes, or up to more than $500
> per
> month.
>
> In response, NAGPS (the National Association of Graduate-Professional
> Students) is calling upon students, faculty and administrators
> throughout
> the United States to contact members of Congress to protest this new
> tax. Graduate students throughout the US have expressed shock and
> surprise at the proposal, with email listserves, web sites and
> word-of-mouth quickly alerting students.
>
> "It is sad that a bill being offered to make taxes `more fair' has
> instituted a brand new tax on students many of whom earn less than
> $15,000
> per year," said NAGPS Executive Director Kevin Boyer. "It is also a
> shame
> that, instead of taking a pro-graduate-education stance in this bill,
> the
> committee chose instead to offer no incentives for graduate
> education."
> NAGPS had anticipated that the tax legislation would extend a tax
> deduction for student loan interest, and would offer a tax incentive
> to
> employers who sought to pay for employees' graduate school. Both
> provisions have widespread bipartisan support and were promised in
> 1996
> Congressional or Presidential campaigns.
>
> Those interested in learning more about the tax bill should visit the
> NAGPS web site at http://www.nagps.org/NAGPS/. NAGPS is also running
> a
> legislative alert email list. To be placed on the list, send an email
> request to nagps@netcom.com
>
> #####
>
> NAGPS Asked: What if Section 117d were eliminated?
> What could be the effect on your tax bill?
> These students represent some of the effects.
>
> STUDENT #1
> Female PhD Student
> Asian Languages & Culture
> University of Michigan/Ann Arbor
>
> CURRENT LAW SCENARIO
> 1997 Gross: $ 8,333
> Projected 1997 Income Tax: $ 268
> 1997 Net Income $ 8,065
>
> NO SECTION 117D SCENARIO
> Stipend Income: $ 8,333
> Tuition waiver (2 x $9470): $18,940
> Total Income: $27,273
> Projected 1997 Income Tax: $ 3,109 (+ 1160%)
> Tuition Paid: $18,940
> 1997 Net Income $5,224 (-$237/mo)
>
> STUDENT #2
> Married Couple, filing jointly; Male PhD student at the University of
> Alabama/Huntsville, both residing in Huntsville, Alabama. Recently
> married. Husband is student at the University of Alabama/Huntsville.
> Wife lost her job in 1996 and has augmented income with painting
> homes.
>
> CURRENT LAW SCENARIO
> 1996 Gross: $39,836
> 1996 Tax: $ 4,405
> 1996 Net Income $35,431
>
> NO SECTION 117D SCENARIO
> Stipend Income: $39,836
> Fellowship Income: $ 6,000
> Total Income: $45,836
> Projected 1996 Income Tax: $ 5,081 (+ 15%)
> Tuition Paid: $ 6,000
> 1996 Net Income $34,755 (-$56/mo)
>
> STUDENT #3
> Female PhD Student
> Worcester Polytechnic Institute
> Resides in Millbury, Massachusetts
>
> CURRENT LAW SCENARIO
> 1996 Gross: $14,400
> 1996 Federal/State Tax: $ 2,390
> 1996 Net Income $12,500
>
> NO SECTION 117D SCENARIO
> Stipend Income: $14,400
> Tuition Waiver Income: $10,680
> Total Income: $25,080
> Projected 1996 Income Tax: $ 3,992 (+67%)
> Tuition Paid: $10,680
> 1996 Net Income $10,488 (-$168/mo)
>
> Student says: ="This would leave me with 10,400, or about 870 per
> month. I
> pay 450 in health insurance, 600 in car insurance, 400 per month for
> rent, and about 100 per month for utilities. This leaves me about 280
> per
> month for food, clothing, books, entertainment, gas, and other
> incidental
> expenses. I have enough trouble as it is living on the 1000 dollars
> per
> month that I currently make after taxes. I never see the extra 10,680
> dollars that go for my tuition ; they are not in my pocket. If this
> tax
> bill is passed, I would seriously consider leaving graduate school, as
> I
> do not think that I could afford to live on the pay that I would take
> home."
>
> STUDENT #4
> Male PhD Student
> University of Delaware
> Resides in Newark, Delaware
>
> CURRENT LAW SCENARIO
> 1997 Gross: $ 9,600
> 1997 Federal/State Tax: $ 838
> 1997 Net Income $ 8,762
>
> NO SECTION 117D SCENARIO
> Stipend Income: $ 9,600
> Tuition Waiver Income: $11,250
> Total Income: $20,850
> Projected 1997 Income Tax: $ 2,527 (+201%)
> Tuition Paid: $11,250
> 1996 Net Income $ 7,073 (-$141/mo)
>
> Student says: "To offset the tax difference ($1,713 at least) for me,
> and
> to compensate for the increased tax withheld from an increased
> stipend, the
> university would have to increase my stipend by more than 20 percent
> $1,985 bringing it from $9,600 to $11,585." How can they do this
> without
> increasing tuition?
>
> STUDENT #5
> Male PhD Student is a Research Assistant on an EPA Grant and studies
> at
> Worcester Polytechnic Institute Resides in Worcester, Massachusetts.
>
> CURRENT LAW SCENARIO
> 1996 Gross: $14,000
> 1996 Federal/State Tax: $ 549
> 1996 Net Income $13,451
>
> NO SECTION 117D SCENARIO
> Stipend Income: $14,000
> Tuition Waiver Income: $11,280
> Total Income: $25,280
> Projected 1996 Income Tax: $ 3,797 (+691%)
> Tuition Paid: $11,280
> 1996 Net Income $10,203 (-$270/mo)
>
> Student says: Each year, I pay $3960 rent, $480 health insurance,
> $360 bus
> pass, $240 phone, $600 other utilities, $130 membership in two
> professional
> societies (American Chem. Soc. and Water Environment Fed.), and $60 to
> maintain a checking account, for a total of $5830 in expenses before
> food. I
> spend another $300 on books and supplies (grad books are expensive!).
> I'm
> frugal - I can maintain a home and eat for $10/day, or $3650/yr. That
> lea=
> ves $3671, or $306/month for entertainment, clothing, Christmas
> presents
> for my nieces, prescription medicines, non-prescription medicines,
> film
> developing, and a suit when I graduate. But this bill would leave me
> with $299, or $16.58/month. Maybe I won't need that suit."
>
> STUDENT #6
> Female PhD Student
> Involved with Dartmouth College Graduate Student Council, Resides in
> Hanover, New Hampshire
>
> CURRENT LAW SCENARIO
> 1996 Gross: $13,538
> 1996 Federal/State Tax: $ 1,429
> 1996 Net Income $12,109
>
> NO SECTION 117D SCENARIO
> Stipend Income: $13,538
> Tuition Waiver Income: $29,128
> Total Income: $42,665
> Projected 1996 Income Tax: $ 7,709 (+539%)
> Tuition Paid: $29,128
> 1996 Net Income $ 5,828 (-$523/mo)
>
> Student says: "Therefore, Dartmouth graduate students would have paid
> $6280
> more in taxes, which would have made our income $7258 for the year
> (46%
> decrease). It would not be possible to live in the area on that wage.
> For 1997, the tuition is now $30,528. I hope this helps! I sent the
> word out to all Arts and Sciences graduate students at Dartmouth
> yesterday (291 of us we're a small grad institution) and all who have
> responded are very upset. It just would not be possible for any of us
> to
> pursue a career in research and education if this tax bill passes. As
> graduate students, we do not expect high incomes in our chosen fields
> and, to be here now, we are sacrificing health benefits, pension
> plans,
> and high incomes during our 20s and 30s. All of this we do to become
> educators and educated researchers for the United States. Shouldn't
> they
> be encouraging us??
>
> STUDENT #7
> Married Couple
> Wife is a student at George Washington University. Husband employed by
> federal government. Resides in Alexandra, Virginia
>
> CURRENT LAW SCENARIO
> 1996 Gross: $50,528
> 1996 Federal/State Tax: $ 5,950
> 1996 Net Income $44,578
>
> NO SECTION 117D SCENARIO
> Stipend Income: $50,528
> Tuition Waiver Income: $ 9,050
> Total Income: $59,578
> Projected 1996 Income Tax: $ 8,164 (+37%)
> Tuition Paid: $ 9,050
> 1996 Net Income $42,364 (-$185/mo)
>
> *=====================================================================
> ===*
> | >>>> The National Association of Graduate - Professional Students
> <<<< |
> | 825 Green Bay Road, Suite 270 PHONE: 847-256-1562
> |
> | Wilmette, IL 60091 FAX: 847-256-8954
> |
> | Toll Free 1-888-88-NAGPS * Email to: NAGPS@NETCOM.COM
> |
> *---------------------------------------------------------------------
> ---*
> | NAGPS 12th National Conference - New Orleans, Louisiana |
> | October 30 - November 2, 1997 |
> +-----------------------------------+---------------------------------
> ---+
> | To access the NAGPS Internet Job Bank, send email to
> nagps@netcom.com |
> *-----------------------------------+---------------------------------
> ---*
> | #### WWW Site > http://www.nagps.org/NAGPS/
> #### |
> *=====================================================================
> ===*
>
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