\u201cThe worst-case scenario would be for America to lose its primacy as the leader in education,\u201d said FLC economics professor Robert Sonora.<\/p>\n
The measure could also make graduate school less desirable for American students, as well as for international students who want to study at top U.S. universities, Sonora said. If fewer people pursue graduate educations, Sonora said his main worry is a shortage of highly educated workers, who tend to contribute to the country\u2019s overall economy more than low-skilled ones.<\/p>\n Currently, graduate students are taxed only on the money they receive as a living stipend or salary for research and teaching assistance. The proposed House plan reclassifies tuition waivers as actual income, meaning the value of the tuition waiver will be added to those salaries and taxed.<\/p>\n For example, if a school waives $50,000 in tuition for a student who is also paid $30,000 for working as an assistant, the student will pay the same income tax rate as someone who earns $80,000 a year.<\/p>\n In a prepared statement to sent to The Durango Herald, Tipton\u2019s communications director, Kelsey Mix, wrote that Tipton believes lessening the tax burden on corporations will provide students access to career opportunities that don\u2019t exist in today\u2019s economy, as well as better-paying jobs.<\/p>\n \u201cThe Congressman believes there are ways to ensure higher education is achievable for any American who wishes to pursue it,\u201d Mix wrote, \u201ceither through encouraging federal agencies to support the future workforce they will need, or decisions higher education institutions may make to restructure today\u2019s tuition-waiver programs.\u201d<\/p>\n