House GOP members work to save higher education benefits

U.S. Reps. Mike Turner (R-OH) and Rodney Davis (R-IL) have teamed up to support students and their families in financing higher education by pressing for inclusion of two critical provisions in the final tax reform bill.

The two provisions would exclude qualified tuition reductions from personal income and expand tax-free qualified employer educational assistance to employees with existing student loan debt, according to a letter Turner and Davis sent on Dec. 7 to House Ways and Means Committee Chairman Kevin Brady (R-TX) and Senate Finance Committee Chairman Orrin Hatch (R-UT).

Previously, Turner and Davis held a colloquy on the issue with Brady on the House floor.

In addition to their signatures, the letter was signed by 24 other House members, including Republican Reps. Tom Cole of Oklahoma; Don Bacon of Nebraska; Glenn “GT” Thompson and Ryan Costello of Pennsylvania; Lamar Smith of Texas; Steve Stivers and David P. Joyce of Ohio; and Susan Brooks of Indiana.

“Tax reform is an important opportunity for our country to grow,” Turner said. “When our workforce is better educated and has less debt, our economy thrives.”

Turner added that the education benefits are critical for middle class Americans who are pursuing the opportunity of higher education to better their lives.

Davis acknowledged that proposals in the tax reform bill to double the standard deduction and expand 529 plans and the child tax credit would help the majority of Americans keep more of what they earn.

“But as a member of Congress representing eight colleges and universities, I believe there are a couple of changes that could be made to specifically help address student debt and access to higher education — a $1 trillion-dollar problem within our country,” Davis said.

“By addressing these issues in tax reform, we can ensure that a building services worker who has worked the same job at a university for 20 years or graduate student are not punished and help address student debt,” he said.

Addressing employee tuition reductions, the lawmakers wrote, “Colleges and universities throughout our districts provide employees — as well as their spouses and dependents — and graduate students with tuition reductions.”

If this section is not maintained, they wrote, then those taxpayers who only are able to receive a higher education via receipt of qualified tuition reductions would face an unnecessary burden doing so.

The lawmakers also pointed out the overall economic benefits of expanding tax-free employer educational assistance.

“Seven in ten college seniors graduate with student loan debt — which now represents the second highest form of consumer debt,” according to the letter. “This debt harms our economy because it prevents many young adults from buying a house, purchasing a car, or saving for retirement.”

The provision for tax-free qualified educational assistance would increase the quality of the American workforce, the lawmakers wrote.