Here’s how the GOP tax bill in Congress could affect UMD students

The US House of Representatives and Senate have passed a tax reform bill that is sure to affect university students. The bill has now to be reconciled and if it’s passed the House bill will become damaging.

According to the bill, tuition wavers will become eligible for taxable income. The bill will also finish the IRS rule which allowed employers to employee students on tax-free paid assistantships. The Senate’s bill did not include these provisions.

However, both bills include a 1.4% tax on private school endowments. The bill would only affect schools that have endowments of about $500,000 per full-time student. The bills will also double the amount of the standard tax deduction for tax fillers.

Taxpayer will be given to option to deduct the amount or deduct a total of all of their tax-deductible expenses such as donations and medical expenses. Deducting the standard amount may become more attractive to some now which would bring a decrease in the amount of donations made to universities and organizations.

This bill would not directly affect the University of Maryland. However, there are a few ways that it will indirectly impact UMD.

Due to the tax payers paying the standard tax now there will be fewer donations made to universities. This would result in low tuition assistance, less options for programs and university services for students that cannot afford to pay through their own pocket.

Wallace Loh, president UMD, believes that the bill would put a “downward pressure” on the state finances which would cut university endowments.