The minus signs in the above might confuse you so let me make this clear -- a negative number means you pay less in taxes, a positive number means you pay more -- except for the poor, for whom the calculus also accounts for reduced federal subsidies for health care. The Cut Cut Cut! act also adds $1.4 trillion to the deficit over the next ten years. So if you make less than $75,000 a year, the Republicans -- the party of small government and fiscal responsibility -- want to raise your taxes to partially pay for a massive tax cut for rich people.
Why do they want to do this? They claim that it will boost economic growth and wages, but that is a lie. The reason for this is because Republican politicians are beholden to obscenely rich donors, not voters.
Speaking now for the academic community, the House bill does the following:
- Imposes a 1.4% tax on income from university endowments. This income is used to provide financial aid, graduate student fellowships, summer internships and research awards for students, and faculty research.
- Taxes tuition waivers for graduate students as income. Since the students will be taxed on income that they never actually see in the form of money, it will be impossible for them to pay it. That means only people with rich parents will be able to get doctorates.
- Eliminates the tax deduction for student loan interest, further restricting educational opportunity for low and moderate income people.