Tax Bill and the latest buzz on implications for Grad Students

[ThePhDAspirant]

May not be the most liked topic due to all the speculations, but prospective Grad students definitely should consider the uncertainties associated with the proposed Tax bill and the implications on grad stipends. So thought of starting this thread separately.

 

Would be great if current grad students can throw some light on the actual implications, preparedness and lobbying attempts in the academia.

 

Note: Mods, please let delete this topic if not found conducive to the overall motto.

[Granps]

Just putting this here:

https://www.forbes.com/sites/prestoncooper2/2017/11/20/no-the-house-tax-bill-wont-destroy-graduate-education/#d9a811487637

[YaSvoboden]

Honestly, it won't have a strong effect on business programs. We will pretty much be able to offer scholarships instead of tuition waivers. Stipend and health insurance, etc. Could still be offered through GA positions. I also know that our university president is lobbying the senator about it.

[XanthusARES]

That's interesting YaS. I also think that the effect on business students may be more minimal than other areas. But I'm not sure about or not you're correct about the tuition waiver. Often this is not decided by the school, but by the university as a whole. Importantly the amount of stipend and scholarship that your department is allowed to give you is often not up to them.

 

For the record in it's current form this will significantly increase the tax burden on all PhD students. It's particularly not fair because the money given as tuition waiver is not "real" money. So we would be being taxed on money that we never see (and can't ever see). I agree that likely schools will find ways around it, but it won't be immediate as the wheels of academia turn slowly. This will definitely discourage students from applying to PhD programs and likely will thin out some of the students that are already in one. Almost everyone I know who isn't in a business PhD program (and some people in business PhD programs) would be forced to either take out loans or get government assistance to survive if this bill passes as is.

 

 

I have a ton of opinions about this, but I prefer to leave my personal politics off of this site.

[YaSvoboden]

Yeah, I don't want politics bleeding into this board either. I can say that as a grad student with 3 kids the potential tax impact is immense.

 

I also worry about grad schools setting up potential GA arrangements. I'm not sure how much individual departments can alter those. I can say that taxing waivers for PhD students is out of line with most of the tax code. There is no "wherewithal to pay" and it isn't really a benefit of employment. It is much more a necessary condition for employment. The argument for taxing waivers that professors get for their kids or full time RA's get for the ability to take some extra classes makes more sense.

[cilantrophy]

Seems like good news!? U.S. tax bill saves grad students’ tuition benefits | Chemical & Engineering News

[YaSvoboden]

I was happy to see it taken out.

[XanthusARES]

I was also happy to see it taken out. Even though it wouldn't have affected me, I have plenty of friends who will still be in programs when it would have started.