How you can get involved
Temple University

Dear Faculty, Students and Members of Our Administrative Staff:

I understand that many faculty and students are concerned about the potential effects of tax legislation being considered in the U.S. Congress. While the legislative process is still on-going, I want to give you a sense of what we are doing and where things stand at the moment.

As the House and Senate continue to work on tax legislation, we have reached out to U.S. legislators to express concerns over provisions that have a potential adverse impact on our students and higher education, and we continue to work closely with national higher education associations and our Congressional delegation.

Below is a newsletter from the president of the American Council on Education (ACE) outlining the state of deliberations regarding this legislation in Congress. ACE is one of the strongest and most vocal advocates on behalf of higher education and all its constituencies. I think the letter (including its links) provides a good summary of the state of deliberations at the federal level.

As with all matters associated with state and local legislation thathas an effect on our students, I encourage you to make your views known to the U.S. House and Senate members as this process continues. If you’re interested in reaching out to Congress, you may want to take a moment to review the ACE action letter crafted to address a number of the higher education policies in the tax legislation.

My very best to all of you. Have a wonderful Thanksgiving break, and enjoy the fellowship of family and other loved ones. As always, I want to thank you for everything you do on behalf of our students and our university.

Sincerely,

Richard M. Englert
President
Temple University
Philadelphia, PA 19122
Phone: 215-204-7405
Email: president@temple.edu


(Excerpt from ACE newsletter)

House Passes Tax Cuts and Jobs Act; Senate Committee Poised to Approve Its Version of the Bill

The House voted 227-205 yesterday to pass the Tax Cuts and Jobs Act (H.R. 1), putting us one step closer to a tax code that undermines our mission to expand participation in postsecondary education for the broadest possible range of students.

As I told House Speaker Paul Ryan (R-WI) and Minority Leader Nancy Pelosi (D-CA) in a letter Wednesday, not only will the bill discourage students from enrolling in college, it also will make higher education more expensive for those who do enroll and undercut the financial stability of institutions across the country. As we have previously pointed out, the House Committee on Ways and Means’ own summary of the bill showed that its provisions would increase the cost to students attending college by more than $65 billion between 2018 and 2027.

Among the specific provisions we have raised objections to:

  • Sec. 1002: Changes to the standardized deduction, which will reduce charitable contributions to our institutions;

  • Sec. 1002: Repeal of the Lifetime Learning Credit, while not substantially increasing the American Opportunity Tax Credit (AOTC);

  • Sec. 1204: Repeal of the Student Loan Interest Deduction (SLID);

  • Sec. 117(d): Repeal of the qualified tuition reduction;

  • Sec. 127: Repeal of educational assistance programs;

  • Sec. 1303: Changes to the state and local tax (SALT) deduction, which will reduce state budgets and, in turn, funding for public higher education;

  • Sec. 3601: Termination of private activity bonds;

  • Sec. 3602: Repeal of advance refunding bonds; and,

  • Sec. 5103: Creation of a new excise tax on endowments at private colleges and universities.



Keep in mind that this is not the final version of the legislation that will be sent to President Trump. The bill must first be reconciled with the Senate version—which is still in process and reportedly might be in trouble. Although the Senate bill retains the student benefits the House version eliminates and preserves private activity bonds, other provisions remain, including those reducing charitable giving, changing the SALT deduction, and creating an excise tax on private college and university endowments. The Senate bill also would repeal the deduction for personal exemptions, including for college-age dependents, and advance refunding bonds, an important tool for institutions to refinance outstanding debt at lower interest rates. In addition, it would broaden the tax on Unrelated Business Income (UBIT), increasing regulatory burden, complexity, and cost. You can read our letter to the Senate Finance Committee on the bill here.

One encouraging development on the education benefits issue occurred Wednesday night on the House floor. Reps. Rodney Davis (R-IL) and Michael Turner (R-OH) spoke of their concerns about the House bill’s repeal of those provisions. In response, Rep. Kevin Brady (R-TX), Ways and Means chair, pledged to work “toward a positive solution on tuition assistance with the Senate” when the two bills go to conference to work out differences, assuming the Senate bill is passed.

The Senate Finance Committee began marking up the bill on Monday, and of this writing, we are expecting the committee to approve it at any time. Although the measure has been amended, the process did not change any of the provisions we have been monitoring. However, it does now include a repeal of the Affordable Care Act’s requirement that most people have health coverage or pay a penalty—one of several provisions that could make final passage difficult.

It is not too late to contact Congress to make your views known on these bills, and to encourage your faculty, staff, and students to do the same. For assistance in these efforts, see our Tax Reform and Higher Education resource page.