* A letter from Illinois Board of Higher Education Chairman Tom Cross and Executive Director Al Bowman to US Sen. Dick Durbin dated November 14…
Dear Senator Durbin:
The Senate tax reform proposal released on November 9, 2017 and the House plan released two weeks ago contain a number of measures that place new tax burdens on higher education. A broad cross-section of higher-education groups have voiced significant concerns. Ted Mitchell, president of the American Council on Education noted that “the House tax-reform proposal released today would discourage participation in postsecondary education, make college more expensive for those who do enroll and undermine the financial stability of public and private two-year and four-year colleges and universities.”
The House bill would change a number of tax deductions that were intended to offset the costs of higher education for both students and corporate sponsors. The Lifetime Learning Credit, for example, allows individuals and families to claim a tax deduction of up to $2,000 for tuition, as well as credit for student-loan interest, and a $5,250 corporate deduction for education-assistance plans. In addition, donations to colleges and universities could decline if fewer individuals itemize deductions as charitable gifts.
The Senate tax reform proposal includes an excise tax on large endowments that support a wide range of college and university functions, including financial aid. Additionally, revenue from licensing of college and university logos would be treated as an unrelated business tax.
In the aggregate, a number of provisions found in both the House and Senate plans would make it more costly for colleges and universities to carry out their missions and the net result will be a significant increase in the cost of higher education.
We would be happy to meet with you or your staff to discuss these critical matters. Please contact us at …
* Meanwhile, from the DGA…
In Washington, Congressional Republicans are attempting to force through a tax overhaul skewed to benefit the wealthiest while many middle-class Illinois families could see an average tax increase of $1,267. And once again, Governor Bruce Rauner is doing nothing to protect them.
In an interview with the Pantagraph, Rauner apparently “lauded” the Republican tax reform effort and talked about cutting the federal tax rate. However, the Republican plans would actually raise taxes on many Illinois middle-class families while exploding the deficit as the wealthiest enjoy a disproportionate share of the benefits.
According to a recent study, the Senate version would mean higher taxes for about 15% of middle-class Illinois households – raising taxes by an average of $1,267.
The House version would mean higher taxes for 27% of middle-class American households – raising taxes by an average of $1,360.
Rauner last month said he has “no obligation” to comment on federal matters. Will Rauner really sit quietly as middle-class taxes go up?
“Bruce Rauner loses all credibility if he stays silent while his own party plans to raise middle-class taxes,” said DGA Illinois Communications Director Sam Salustro. “Rauner refusal to stand up to his party and President in Washington shows he’s fighting for himself and not for Illinois families. Now, Republicans want to raise middle-class taxes, and Rauner is going to let it happen.”
The governor has a press conference today in Chicago, so maybe he’ll be asked about this.
- Saputo's Back Room - Thursday, Nov 16, 17 @ 8:54 am:
Where was the DGA when the Democrat-led General Assembly hiked income taxes on every single Illinois family? Give me a break.
- Truthteller - Thursday, Nov 16, 17 @ 9:07 am:
So the Republican tax bill would tax the endowments of universities which are used in part to subsidize the tuition of lower income students while exempting from tax the estates of the wealthiest individuals whose proceeds go to their rich kids.
Breathtaking in its audacity. But only one example of how the GOP caters to its wealthy benefactors. DISGUSTING!
- Honeybear - Thursday, Nov 16, 17 @ 9:15 am:
I say “cry havoc” and loose fiscal destruction
Elections have consequences
Illinois and the other 49
Are about to learn some tough stuff
I think we are going to be South Africa
Inside of a decade
Watch us rise fast on the Gini index
Marx could not have even dreamed
Of the disparity the majority will experience.
Wow….
Republican “useful idiots”
Let’s see where
Your
Anti Union
Anti public education
Anti intellectual
Anti government
Gets this nation and state.
You think it’s bad now?
- Joe Bidenopolous - Thursday, Nov 16, 17 @ 10:03 am:
If I’m not mistaken, the Senate plan also reinserted the provision that makes graduate scholarships taxable income, so graduate students would get taxed on money they never see. Classy, GOP, just classy - but you can see through it - long-term, they need a less-informed electorate.
- Lester Holt’s Mustache - Thursday, Nov 16, 17 @ 10:54 am:
==Where was the DGA when the Democrat-led General Assembly hiked income taxes on every single Illinois family? Give me a break.==
Where was “Saputo’s Back Room” when the Governor was increasing Illinois debt by $12 Billion and vetoing the spending bills, necessitating a tax hike to pay for his profligate spending? Are you advocating that we keep governor Rauner’s record debt levels on the books, and make our children and grandchildren pay for it?