Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

A Negative Ripple

Newspaper article Pittsburgh Post-Gazette (Pittsburgh, PA)

A Negative Ripple

Article excerpt

The very idea of taxing tuition waivers as ordinary income is appallingly misguided. Tuition waivers are granted to graduate students who serve as teaching or research assistants. They are also granted to members of the faculties and staffs of colleges and universities, benefiting the family members of professors, janitors and secretaries.

Adding the value of such waivers to the earned income of beneficiaries from janitors to grad students to faculty would not only increase the income subject to income tax. It could also increase the income subject to FICA (Social Security and Medicare). A graduate student with cash income of $23,000 could be subject not only to income tax based on theoretical income of $70,000-plus but also to FICA withholding of more than 7.5 percent on that total. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.