2.10.2009
Stacking up the House and Senate Stimulus Package
Higher Ed Watch provides a thorough review of the developments in the federal stimulus package. Generally, the Senate version of the bill has significantly less funding for higher education. The cut in state stabilization dollars could have a significant impact on higher education funding and the proposed tuition freeze. Here is a chart stacking the two proposals side-by-side.
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2 comments:
Josh,
Not shown in the chart, but included in their analysis on their web site is the House and Senate both contain a new American Opportunity Tax Credit which amends the Hope Tax Credit and has a max credit of $2,500 a year for up to four years, not the first two years like the current tax provision.
Most importantly both bills INCLUDE COURSE MATERIALS costs -for the first time, meaning real relief for students’ textbook costs as financial aid normally dries up before it could be applied for books and what a student receives. Grant aid has to apply against tuition and fees and soon to be course material costs under the tax credit.
However, the House bill includes a 40% refundable credit (up to $1,000) while the Senate bill includes a 30% refundable credit (up to $750) which is about a $777 million dollar difference between the House and Senate over two years. The refundable feature means even low income students who have not qualified under Hope in the past because they don't pay enough federal taxes will be able to. The Center for Budget Policy and Priorities, estimates under the House bill that 53,000 more Maryland students would qualify for the first time for the credits thanks to refundable feature of the legislation. Thus the House bill is far more favorable for students, particularly lower income students.
As an aside, students should be saving their receipts for their course material purchases this year so they can apply and take full advantage under the tax credit in their 2009 tax returns.
Richard Hershman
Director of Government Relations
National Association of College Stores
I can't believe what I am hearing. Why are we anxiously waiting for Government to give us money that was ours to begin with. It's bloody theft. Bite the hand and take back what was rightfully yours to begin with.
Where did this money come from in the first place? It's the labor of those that work. It is rightfully their money and not the government's to distribute as they see fit. Think about what the government uses this money for. They blow it trying to maintain their empire and welfare state which does not serve to benefit the commoner, at all! Think about how many people could afford college if it wasn't subsidized by government and people had their full paychecks to spend on education. Wouldn't need any help because you could actually afford it, wouldn't you? Most could without a bank loan!
But everyone just seems to waltz along and aquiesce to the status quo and the ever declining predicament we're in. I say enough of it. It's time to rechain the government to its proper role, protecting rights and nothing more!
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