Statement from CICU President Mary Beth Labate on H.R. 1, the House's Tax Proposal

News Date: 11/6/2017

“The tax proposal under consideration in the House would make a college education more expensive for students and families,” said Mary Beth Labate, president of the Commission on Independent Colleges and Universities.

“The proposal would take away tax incentives that help families save for college. What’s more, the proposal would eliminate the ability to deduct interest paid toward qualified student loans. On top of that, employers would lose incentives to contribute to their employees’ higher education expenses. Americans rely on tax credits and deductions like these to make higher education possible,” Labate said.

“The tax proposal also goes after endowment funds at private, not-for-profit colleges and universities. These funds are used to provide scholarships and services to students, to attract and retain world-class faculty, to conduct groundbreaking research, and to stabilize tuition rates. This proposed tax would affect a wide variety of institutions, from small liberal arts colleges to large research universities. Taxing endowment funds would directly harm New York students who could see less aid from their institutions. The proposed tax would also harm New York’s economy by making it more difficult for colleges and universities to fund the groundbreaking research that creates jobs and helps prepare the state for the economy of the future.” Labate said.