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Tax bill may slash graduate stipends in USA (fwd)
>> * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * * *
>>
>>Please read this carefully, even if you have already heard
>>about this issue. We apologize for the length, but feel
>>this is a critical issue, and that graduate students
>>nationwide need to band together.
>>
>>***Please forward this Email to your fellow graduate students
>> and faculty at all US universities as well as to family and
>> friends who will be supportive of our views, and under-
>> graduates who may be considering graduate school in the
>> future. Please help us spread the word in order to keep
>> your taxes down. It is urgent that this message be heard
>> across the country by every graduate student*** July 1, 1997
>>
>>>From the graduate student representative organizations at:
>> Johns Hopkins School of Medicine
>> Harvard University
>> Massachusetts Institute of Technology
>> Stanford University
>>==============================================================
>>
>>Background:
>>
>>As you may know, the "Tax Relief Act" of 1997, passed the U.S.
>>House of Representatives (H.R. 2014) on Thursday, June 26; a
>>different version of the bill passed the Senate (S. 949) on
>>Friday, June 27. The House bill, while providing $135 billion
>>in tax relief to many Americans, contains a provision which
>>drastically and detrimentally affects graduate students. A
>>short clause phases out section 117(d) of the tax code, the
>>section that excludes the value of tuition waivers or tuition
>>reductions from taxable income. With the loss of this tuition
>>tax exclusion, many graduate students will see their taxes
>>raised by thousands of dollars per year. Examples provided by
>>the NAGPS (National Association of Graduate-Professional
>>Students) indicate that some of us may see our after-tax wages
>>cut by 50% or even more!!
>>
>>Tuition waivers are used in many graduate programs to assist
>>students during their often-lengthy education. Most of these
>>students are obtaining PhDs in academic fields and will go on
>>to modestly-paying university positions, possibly after long
>>post-doctoral research. They serve as teaching assistants or
>>research assistants in return for not paying tuition, which can
>>easily exceed $20,000 per year at private institutions. Under
>>the House version of the bill, the value of this tuition waiver
>>would be considered taxable income.
>>
>>Although the House version of this bill is a disaster for
>>graduate students, the Senate version does not include the
>>repeal of section 117(d) of the tax code. Because of this
>>and many other differences in the House and Senate versions
>>of the bill, both houses of Congress (as well as the White
>>House) will convene to reconcile the two versions of the bill
>>following the July 4th recess. At that point, the bill will
>>be voted on for final passage, and signed into law. Our last
>>chance to defeat the House bill is through this House-Senate
>>Committee, which is expected to begin meeting the week of
>>July 7th.
>>
>>If you have not heard of this issue, contained within the
>>highly publicized "Tax Relief Act," it is because this act is
>>enormous, containing tax issues involving cigarettes,
>>capital gains, and the $500 per child tax credit, to name just
>>a few. It is these other issues which have gained the media's
>>attention, and few people seem to be aware of the impending
>>disaster for graduate students, higher education, and
>>university and research budgets. **It is our responsibility
>>to ensure that our opinions are voiced and that this issue
>>gains national attention.
>>
>>For more background on this situation, see one of the
>>following web sites:
>>NAGPS:
>> <http://www.nagps.org/Student_Aid/105th/97_TaxReconciliation.html>
>>MIT GSC:
>> <http://www.mit.edu/activities/gsc/Tax/tax.html>
>>Harvard GSC:
>> <http://www.hcs.harvard.edu/~gsc/issues/funding/section117.shtml>
>>
>>=================================================================
>>
>>What you can do:
>>
>>1. Please forward this Email to all graduate students you know
>> at other institutions, as well as your family, your
>> friends, and any undergraduates you know who plan to go
>> to graduate school in the future. (Maybe media also!)
>> Convince them to take action.
>>
>>2. Distribute this information to fellow students, faculty,
>> department and graduate program directors, and
>> administrators within your own institution. Organize a
>> campus-wide response through your local graduate student
>> representative group. Be sure that your administration
>> is on top of this issue and is taking immediate action.
>>
>>3. Call (or fax or email) your Senators and Representative!
>> It is critical that your voice be heard by your own members
>> of Congress. Shear numbers of calls will make an impact.
>>
>>4. Make a special effort to swamp the members of the Conference
>> Committee with calls, as they will make the ultimate
>> decision in reconciling the bills. If you are
>> represented by one of these Senators or know someone who
>> is (DE/MS/NY/NM/IA/OK/NJ/ND), make sure contact is made!
>>
>>=================================================================
>>
>>How to contact your Senators and Representatives:
>>
>>House/Senate switchboard: 800-962-3524 or 800-972-3524
>> or House: 202-225-3121 Senate: 202-224-3121
>>
>>Or check <http://congress.org> for addresses, direct phone
>>number, district office number, email and more information.
>>
>>The following senators are members of the Conference Committee
>>which will be composing the final version of the bill. These are
>>critical people to target, especially if you live or go to school
>>in DE, MS, NY, NM, IA, OK, NJ or ND.
>> Roth (R-DE), Lott (R-MS), Moynihan (D-NY),
>> Domenici (R-NM), Grassley (R-IA), Nickles (R-OK),
>> Lautenberg (D-NJ), Conrad (D-ND)
>>
>>House Conference Committee members will not be announced until
>>July 7th or 8th.
>>
>>Congress is now on Independence Day recess (through July 7th)
>>and most members will be in their home districts. Use this
>>opportunity to meet with them personally to discuss your concerns.
>>
>>=================================================================
>>
>>What to say in your calls and letters:
>>
>>Please be polite and courteous, but let them know that you oppose
>>the loss of section 117(d), the tuition tax waiver for graduate
>>students. This waiver is retained in the Senate version (S. 949)
>>of the Tax Relief Act but eliminated in the House version
>>(H.R. 2014). Be sure to mention that you are concerned that this
>>issue be carefully considered at the meeting of the Joint House-
>>Senate Conference Committee to reconcile the two versions of the
>>Tax Relief Act. Explain to them your concerns for higher
>>education and for research should the tuition tax waiver be lost.
>>
>>Here are some specific points to mention:
>>- how this tax increase will impact your financial status
>> (have numbers to illustrate your point)
>>- how top students will opt to not pursue graduate degrees,
>> threatening America's continued leadership in research
>>- how graduate students will leave graduate school
>>- how losing qualified students in your field will impact the US
>> (e.g., biology: cancer and HIV/AIDS research
>> engineering/physics: national defense)
>>- how this tax will increase costs to universities, leading to
>> an increase in undergraduate tuition
>>- for more specifics, see NAGPS Talking Points:
>> <http://www.nagps.org/Student_Aid/105th/Tax_TalkingPoints.html>
>>
>>WRITE, PHONE, and FAX these issues to your representatives
>>immediately. The more they are aware that there is real and dire
>>concern over this issue, the more likely that this issue will be
>>removed in the House-Senate Conference Committee.
>>
>>=================================================================
>>
>>Thanks for your action!
>>
>>The Johns Hopkins University School of Medicine
>>Graduate Student Association
>>gsa-g@welchlink.welch.jhu.edu
>><http://www.med.jhu.edu/gsa/GSAmain.html>
>>
>>Harvard University Graduate School of Arts & Sciences
>>Graduate School Council
>>gsc@hcs.harvard.edu
>><http://www.hcs.harvard.edu/~gsc/>
>>
>>Massachusetts Institute of Technology
>>Graduate Student Council
>><http://www.mit.edu/activities/gsc/>
>>
>>Stanford University
>>Graduate Student Council
>>gsc@assu.stanford.edu
>><http://pangea.stanford.edu/~owen/gsc.html>
>>
>
>______________________________
>
>Anne M. Villeneuve
>Dept. of Developmental Biology
>B300 Beckman Center
>Stanford University School of Medicine
>Stanford, CA 94305
>Phone (415) 725-5505
>FAX (415) 725-7739
>villen@cmgm.stanford.edu
>