Northeastern Denounces Tax Reform Proposal

However, the tax reform bill under consideration in the House seems poised to put one of the most significant engines of social mobility in reverse.

On November 16, the U.S House of Representatives passed a major tax reform bill which proposes sweeping changes to the current U.S. tax code system. There is a similar tax reform bills that is set for a vote in the Senate in the near future. There is a great deal of concern about the implications of these proposed tax reform bills for graduate students. Northeastern University has been very vocal about its opposition to the proposed tax plan and has been working diligently on behalf of all of our graduate students to communicate the negative impact of this tax bill on our graduate students, the workforce, and communities across the nation in general.

If voted and signed into law, both of these tax reform proposals could have far-reaching consequences for graduate students, such as reducing certain tuition benefits, making higher education less accessible and more expensive. University leaders have been working directly with elected officials to fight on behalf of students and the higher education community. Northeastern has also been working closely with a number of organizations that represent hundreds of colleges and universities to oppose the proposed tax bills.

• There are several provisions of each bill that would directly and immediately impact students and universities. The House Tax Cuts and Jobs Act would:
• Eliminate student loan interest and tuition payment deductions.
• Make the value of qualified tuition reductions for employees taxable as income.
• Make the value of qualified tuition reductions provided by outside employers taxable.
• Tax certain university endowments
• Double the standard for charitable tax deductions
• Change the tax structure of income from certain research programs
• Burden non-traditional students and lifelong learners by eliminating the Hope Scholarship Credit and the Lifelong Learning Credit.

Unlike its counterpart in the House, the Senate Tax Cuts and Jobs Act does not include many of the provisions that impact individual students. It still, however, stands to eliminate a set of longstanding provisions designed to help a wide range of students and their families fund a college education.

Northeastern University has been quick to denounce these potentially disastrous bills and has taken action to help prevent them from being passed.

“Northeastern quickly recognized and mobilized to address the threats posed by the tax bill to its students and families, and to all colleges and universities working to make a high-quality education accessible to more students,” said Ted Mitchell, president of the American Council on Education. “Northeastern is playing a vital role as the higher education community works to show lawmakers that they must not approach tax reform in a way that discourages participation in postsecondary education and makes college more expensive for those who do enroll.”
“As the process moves forward, we’ll continue to engage with our elected officials and leverage our strong relationships in D.C. so that they do everything possible to ensure the final tax bill protects the interests of the Northeastern community,” said Tim Leshan, Northeastern’s Vice President for government relations.