Discussing the proposed Republican tax bill is difficult because different versions appear almost daily and the House and Senate have alternative bills. But the proposals have some features worth noting.

Graduate students often receive waivers of their tuition as part of a financial package to make extending their higher education affordable, or at least a little less unaffordable. In the past, this benefit has not been considered taxable income for graduate students. Under the proposed House bill tuition waivers would be taxable as earned income.

If the House version of the bill passes, a student earning a stipend of $18,000 and awarded a tuition waiver of $25,000 would have to calculate tax on income (before any exemptions) of $43,000 rather than $18,000. This would require cash many graduate students simply do not have and which they would have to borrow to obtain.

U.S. graduate schools have been a point of pride and a key driver in our nation’s research and technological leadership. Additionally, international graduate students develop an appreciation for the U.S. that extends long beyond graduate school. By making graduate school unaffordable we will be driving the best students, domestic and international, to further their education in other countries where tuition is lower and waivers are not taxed. 

Another target of the proposed tax bill is kindergarten through 12^th grade teachers, who will lose a $250 deduction for buying supplies out-of-pocket.  A 2013 study found the average teacher spends almost $500 from personal funds annually to supplement meager school budgets. U.S. teachers’ pay relative to that of workers with similar educational backgrounds and preparation ranks lower than that of 27 other countries in the Organization for Economic Co-operation and Development. Removing a deduction that allows teachers to deduct part of what they spend personally is mean-spirited and misguided. 

At the same time, the House bill would eliminate the rarely-paid estate tax, which applies to only one in 500 households. The Senate would double the exemption; individuals would pay estate tax only on amounts over $11 million and $22 million for couples. 

What do these proposals say about our national values and priorities? Why make graduate school unaffordable and remove a small but symbolic deduction from dedicated teachers, while allowing the extremely wealthy to accumulate even more wealth tax-free? How does any of this make America greater?