Scholarships would threaten U.S. progress
Taxing graduate
American universities are the best in the world at educating graduate students to be innovative leaders. American companies and institutions depend on these talented students to compete in fast-growing, highly competitive sectors. Pittsburgh is a great example of how talented students help a city to attract companies like Google and Uber and also help create new startup companies and foster innovation. We now face a threat to our progress.
The tax reform proposals being considered by the U.S. House and Senate differ on a key provision. The House wants to impose a new tax on tuition scholarships that universities award to students pursuing Ph.D.s and other advanced degrees. The Senate proposal does not advance that provision — and it is critical that the key elements of the House proposal are not in any bill that emerges from this process.
Universities often provide tuition scholarships for Ph.D. students typically covering full tuition (often $30,000 to $50,000) of students in those programs. This is one way that universities support the investment of time and effort of pursuing degrees that require innovative research. Students are trained and mentored by world-class faculty to discover new knowledge in areas like science, technology and the humanities. Historically, these tuition scholarships have not been taxable as income, provided that students are engaged in research or teaching.
This model has allowed American universities to attract the best students and to dominate the rankings of the top global universities. The House’s tax reform proposal would cost graduate students thousands of dollars per year, making these programs unaffordable. The talent pipeline could dwindle, jeopardizing innovation and causing companies to seek talent overseas.
The United States cannot afford to create new barriers to educating students who will be uniquely qualified to strengthen and shape the future of our city, our region and our country. NATHAN URBAN
Vice Provost Graduate Studies and
Strategic Initiatives University of Pittsburgh
Oakland