🚀 go-pugleaf

7/24/97

** Tax Bill clarification and Action Items **

Dear NAGPS Members and Friends;

I continue to stand in today on legislative issues while the NAGPS
legislative team participates in Senate hearings on Capitol Hill today.
NAGPS President Bryan Hannegan testified before the Senate today.

In an update earlier this morning, I outlined the details of the
compromise reached by Republican Senators and Republicans on the tax
bill.  In summary, the proposed elimination of 117d does NOT appear in
the final bill (a HUGE victory for NAGS and all of you); student loan
interest will become tax deductible (up to $2,500 deduction per year in
the
first five years of repayment, phased out for single taxpayers between
$40K and $55k and for married taxpayers filing jointly between $60K and
$75K); section 127 of the IRC was extended just 3 years and for undergrads
only; and the tuition tax credit is for just 5% of up to $5,000 tuition
paid per year, unclear if it applies to graduate student tuition.

Negotiations will now proceed between Congress and the White
House/Treasury Department.  Telephone calls and email messages are needed
to ensure that the administration understands the importance of remaining
firm on their pre-existing positions with regard to graduate education.

Email to president@whitehouse.gov, vice-president@whitehouse.gov - phone
calls to public comment line at (202) 456-1111 (Monday through Friday, 9
am to 5 pm Eastern time).
 
Our message (see our web site for fact sheets on these items)
 
1.      Internal Revenue Code Section 127 should be extended permanently
and should include graduate courses eligibility.

2.      Student Loan Interest Tax Deduction phaseouts should be restored
to the Senate's position with respect to married taxpayers filing jointly
(change from $60K to $75K phaseout, back to $80K to $100K phaseout)
          
3. Tuition tax credit needs to be increased from 5% of up to $5000 back up
to president's proposal of 20% of up to $5,000 (until the year 2000, 20%
of $10,000 afterward) and the tuition tax credit needs to be available for
graduate education.

While NAGPS does not have an official position on the tax exempt status of
TIAA-CREF, current and future academic employees should be aware that we
believe the compromise bill phases out the tax exempt status of that
academic employee retirement fund over the next four years.  Interested
parties should consult the TIAA-CREF web site (http://www.tiaa-cref.org)
to learn more.  You may wish to include a pro-TIAA-CREF tax-exemption
message in your call or email to the White House.

Please make every effort to make these calls or send these email messages
today or tomorrow.  Remember that phone calls are ALWAYS better than
email.  The White House will know of our support for their bargaining
position if they get many, many phone calls from grad students.

I understand from friends in DC that Bryan Hannegan's testimony before
the Senate Labor, HHS and Education committee was well received today and
that he performed very well representing the nation's 2.5 million
graduate/professional students.  I'm sure he will provide an update to
NAGPS members later in the week.

As always, thank you for your help.

Kevin Boyer
NAGPS Executive Director