Ohio congresswoman Marcy Kaptur released two letters Tuesday, Nov. 14 from the University of Toledo and Ohio State University expressing concerns over Republican tax bill H.R. 1 in its current form.
The “Tax Cuts and Jobs Act” proposes to lower the corporate tax rate from 35 percent to 20 percent, eliminate parts of the state and local income tax deduction and student loan interest deduction, and impose a new cap on mortgage interest deductions, according to a House of Representatives press release.
People who earn less than $83,750 a year will see an average tax increase of $710 a year, according to a chart outlining the GOP tax proposal state-by-state.
UT’s letter said the bill would tax students’ tuition waivers provided by colleges and universities, affecting over 30,000 UT graduate students by increasing out-of-pocket costs.
This provision may also harm the university’s ability to research water quality in Lake Erie, photovoltaic technology and medical research, the letter said.
In the letter from OSU, the university expressed concern about the legislation’s proposed repeal of provisions that would protect graduate students from a tax increase, citing the repeal as a hindrance to their research.
Both universities said the legislation would negatively affect charitable donations with the provisions that would eliminate the charitable deduction for donations and would expand the standard of deduction for charitable giving.
For UT, the number of donors who itemize deductions could decrease resulting in fewer donations for the university, according to the letter.
“With major universities in Ohio joining the chorus of many other groups worried about teachers, students, seniors and middle-class families, it is imperative that the Republican-controlled Congress reverse course on this wrongheaded tax proposal,” said Kaptur in the press release. “Let’s instead focus on real reform that doesn’t sell out our future.”