[US Rep. Rodney Davis], whose congressional district includes the University of Illinois, three other public universities, four private universities or colleges and several community college districts, said he was “cautiously optimistic” the tax break would be retained.
I think the total number of universities and colleges in Davis’ district is 13.
Rep. Rodney Davis knew that the GOP tax scam was going to hammer students in his district and increase the cost of college, but he voted for it anyway to deliver a tax break to millionaires and big corporations.
Here are just a few ways the GOP tax scam is going to hurt students, graduates, and their families:
These cuts to education assistance will cost students and families more than $71 billion over the next decade according to the Joint Committee on Taxation.
And it’s not like Davis didn’t know how harmful this bill was – students made their voices heard loud and clear, a local editorial spelled it out, and Davis himself wrote a last-minute letter acknowledging that eliminating tuition waivers would hurt grad students. Then when Washington Republicans ignored his letter, he voted for the GOP tax scam anyway.
“Rep. Rodney Davis’ many promises to help students ring hollow with his vote to raise their taxes and make it harder for them to pay off their loans,” said DCCC spokesperson Jacob Peters. “By voting for this GOP tax scam, Rodney Davis has made it clear he cares more about giving tax cuts to millionaires and big corporations than he does about reducing the cost of college and easing the burden of student loan debt on students and their families.”
State and local government pension plans would be confronted with new costs and complications under the Republican tax bill the U.S. House approved last week.
Some, but not all, public pension investments would become subject to what’s known as the Unrelated Business Income Tax, or UBIT, if the current version of the House bill were to be enacted. The proposed change to how the tax is applied would make it so state and local government pension plans are treated in a way that is similar to private sector pensions, or nonprofit organizations.
Hank Kim, executive director of the National Conference on Public Employee Retirement Systems, said that if the House proposal were to go into effect, it would be the first time that state and local pension systems would have to pay federal tax on their investments.
“It’s a huge burden,” Kim added by phone this week.
Retired police, firefighters and teachers are a few examples of people covered by the state and local government pension plans that could be affected by the House proposal. Legislation the U.S. Senate Finance Committee has passed does not include similar UBIT provisions.
* GOP tax plan rattles higher education: Congressional Republicans’ plans to slap unprecedented new taxes on higher education have left college leaders shocked and scrambling — the latest salvo in what some observers say is a growing culture war on a higher education system seen as elitist and out of touch.
* Tax bill reflects rift between many Republicans and higher education: In July, the Pew Research Center found that 58 percent of Republicans and Republican-leaning independents say that colleges and universities have a negative effect on the way things are going in the country. That was up from 37 percent two years earlier. By contrast, a large majority of Democrats and Democratic-leaning independents — 72 percent — said this year that colleges have a positive effect.
* Republican Tax Plan for Colleges Is a Self-Inflicted Wound: The U.S. university system is one of the country’s most important remaining economic advantages. Even as manufacturing industries have moved to China, the U.S. has retained its dominance in higher education. The research and technology output of American universities, and the skilled postgraduate workers they produce, are an important anchor keeping knowledge industries — Silicon Valley, the pharmaceutical industry and the oil services industry, to name just three — clustered in the country, instead of fleeing to places with lower labor costs. Degrade higher education, and the U.S. will become a much less attractive place for cutting-edge industries, and less important to the global economy.