Federal tax bill has mixed news for Stanford

The Federal Tax bills bring forth a mixture of good and bad news for Stanford. President Marc Tessier-Lavingeand Provost PersisDrell said that the bill provided some relief as Senate did not include some of the provisions included by the House in the earlier version of the bill.

The provisions that have now been excluded from the tax bills were not favorable because they suggested on making the tuition and fees revenues to be treated as taxable incomes and also repelled the student loan interest deduction. However, on the down side, there is a 1.4% tax on excise tax on the investment earnings of Stanford.

The University is now evaluating the probable consequence of this tax on the university’s finances0 and its designing strategies to cope up with the tax burden. The students and staff have been communicating this news. Marc Tessier-Lavinge and PersisDrellreportedly said “Our next step will be to analyze the effects of the final bill on Stanford and factor those effects into our budget planning process for the year 2018-2019. The budget process will take place through the spring and culminate in the adoption of a Budget by the Board of Trustees in June.”