The tax bill currently in play in the House is seriously flawed in many ways in that will benefit large corporations and the super-wealthy on the backs of the poor, the middle class and Illinois taxpayers. One particular item in the bill is cutting far too close to home: a provision that would tax Graduate Student tuition waivers as if they are income.
Our son recently started a PhD program in education at Indiana University. He has taught special education for three years and completed his master's degree at night online. He recently married, his wife found a teaching job and they bought a modest townhouse. The are living modestly and pursuing both the American Dream and giving back to our society. The plan to tax the tuition stipend will increase their taxable income by over $30,000 per year and their tax bill by about $6,000 per year.
Under this plan, our son and his wife, along with over 100,000 grad students around the country, would be funding the huge tax cuts for super-wealthy families via the elimination of the inheritance tax and large corporations through the large cut in business taxes. He could be faced with a choice to either discontinue his PhD program or take out loans. Not only is this a bad policy in terms of our country's future, it is immoral and wrong.
We ask that U.S. Reps. Darin LaHood and Rodney Davis work with their colleagues on both sides of the aisle to eliminate the taxing of tuition wavers.
Michael and Susan Andresen, Bloomington