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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
>