A Tuition Tax?

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Pittsburgh Sets Vote on Adding Tax on Tuition
December 16, 2009
By IAN URBINA

The mayor of Pittsburgh calls it the “Fair Share Tax.” But to officials at the city’s 10 colleges and universities and many of their 100,000 students, it is anything but.

On Wednesday, the City Council is expected to give preliminary approval to Mayor Luke Ravenstahl’s proposal for a 1 percent tuition tax on students attending college in Pittsburgh, which he says will raise $16.2 million in annual revenue that is needed to pay pensions for retired city employees. Final Council action will be on Monday.

The tax would be the first of its kind in the nation, and other cities are watching closely as they try to find ways to close their own budget gaps.

Students and college officials argue that the tax will drive students away and place an unfair burden on institutions that already contribute substantially to the city. They add that the measure comes at an especially difficult time for colleges, as endowment values have fallen and requests for financial aid have risen.

The tax, which would take effect as early as July, would range from about $20 a year for students at cheaper schools like the Community College of Allegheny County to just over $400 for students at the city’s priciest university, Carnegie Mellon.

Fairshare?  There are plenty of groups of people getting benefits such as this that arent paying an extra tax... why should students have to?

Other cities have considered going this route. This spring, for example, Mayor David N. Cicilline of Providence, R.I., proposed a $150-per-semester tax on students at the city’s four private colleges. The State Legislature, however, did not take it up.

And in Boston, Mayor Thomas M. Menino created a task force in January to explore increasing voluntary payments from the city’s universities and hospitals.

Officials at the University of Pittsburgh said they would “vigorously oppose any attempt to impose a service or privilege fee on our undergraduate and graduate students.”

In a four-page letter, the Pittsburgh Council on Higher Education said it refused to consider payments as long as the mayor continued the threat of a tax that it called divisive, illegal and unenforceable.

The council added that the city’s colleges and universities pay $23 million annually in taxes to the city for payroll, parking, business privileges and any real estate not directly related to their educational missions.

Is this tax legal?

Politically, Mr. Ravenstahl risks few votes in leaning on universities for revenue because college students rarely vote in local elections. And many of the constituencies that supported Mr. Ravenstahl’s re-election in November have been vocally supportive of his tax plan.

Maybe we need to set up our voting.

“We have jobs in Pittsburgh so we pay taxes on that income, we rent apartments so we pay taxes on that, we have cars here, which provide parking taxes,” said David Gau, an undergraduate at the University of Pittsburgh, adding that he resented the portrayal of students as freeloaders. “We go to a variety of events like symphony, sports games, plays, concerts, and there are amusement taxes on those that produce even more revenue from us.”

From:  http://www.nytimes.com/2009/12/16/education/16college.html


Seriously?  As if college students arent already building a lot of debt.  We are already paying taxes like everyone else, why should we be taxed again?

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WireTap
Proposed Student Tax Hurts Local Economies
By Viany Orozco
Posted on December 18, 2009, Printed on February 5, 2010
http://www.wiretapmag.org/blogs/education/44734/

In this recession, the highest priority in higher education among political leaders should be college access and affordability. Anything short of this will exclude low- and moderate-income students from gaining the preparation they need to not only gain better salaries but also to contribute more to their communities.

Research by CEOs for Cities found that if each of the nation's 51 largest metropolitan areas improved their educational attainment by just one percentage point, the nation would realize a $124 billion annual dividend.

Yet as students are struggling to pay for rising tuition costs resulting from severe cuts in higher education funding by the states, the mayor of Pittsburgh, Luke Ravenstahl, has proposed a one percent tax on the college tuition of students in Pittsburgh. Students throughout the state are already sacrificing financially to pay for their college educations.

Half of Carnegie Mellon students who graduated in 2008 had an average debt of $29,346. At the University of Pittsburgh-Bradford, 92 percent of its 2008 graduating class had debt averaging $26,463. This tax will not only translate into more debt, it will significantly impact the ability of low- and moderate-income college students to enter college or stay enrolled.

There is no question that the recession exacerbated Pittsburgh's tenuous financial landscape but students cannot be the scapegoat of these financial troubles, not only because it's wrong but because it makes no economic sense.

Even before the recession, students throughout the state were paying the price of stagnant financial aid and increasing tuition. In the long run, Mayor Ravenstahl's strategy will certainly hurt the interests of Pittsburgh residents, especially its middle class.

Viany Orozco is a Policy Analyst in Economic Opportunity Program at Demos: Ideas & Action. Viany's research and analysis at Demos focuses on the economic challenges facing young people, with a particular focus on state-based policy solutions.
© 2010 Wiretap Magazine. All rights reserved.
View this story online at: http://www.wiretapmag.org/blogs/education/44734/

[gh]

Really?!?!This is just ridiculous!  It seems like the people who want to tax the colleges and universities must not have children attending and they have not recently attended college. I know I still have more schooling to go, but I already have around $40,000 in debt and I only took out enough to pay tuition. All of my other expenses I paid for by having 1-2 jobs while enrolled in school full-time. I know there are other college students that will graduate with more debt than I have, but I really think that adding more to the cost of education is a very idiotic thing to do.

We have jobs in Pittsburgh so we pay taxes on that income, we rent apartments so we pay taxes on that, we have cars here, which provide parking taxes,” said David Gau, an undergraduate at the University of Pittsburgh, adding that he resented the portrayal of students as freeloaders. “We go to a variety of events like symphony, sports games, plays, concerts, and there are amusement taxes on those that produce even more revenue from us.

I agree that college students help stimulate the economy, but it's not just in Pittsburgh. We also stimulate the economy in those small towns with community colleges, and the large towns with universities, like Fargo and Grand Forks. We pay taxes when we eat out, when we shop, on the electrical utilities if you live off campus, and all those other expenses.

“City officials see this as an untapped revenue source, and if Pittsburgh succeeds, I think you will see a lot of other cities immediately move to do the same,” said Terry Hartle of the American Council on Education,

I am very disappointed in our nation.  It seems like they are so focused on stimulating the economy,and so desperate to get money, that it doesn't matter where the government in cities or states gets it from, just so long as they get the money. Education is important and they should have no complaints about colleges and universities. Our generations are the ones that will be taking care of these people in their old age, because we are the future. If they start adding a tax on tuition, I think it will deter more people from college. The U.S. is already a lacking nation of education. Other foreign countries like China, Japan, and even all of Europe outrank the U.S. with the percentage of people who attended/have attended colleges. It's no wonder so many companies are overseas......

Yes, education is expensive,and there doesn't need to be more expenses added to something that is costly already.  I think there are only a few people who attended college without having a part-time job sometime while attending, but that was because they were on full scholarship or their education was paid for by wealthy parents/relatives.

 :BangHead: I do hope that the people in Pittsburgh at least have enough common sense to say no to passing this measure for taxes on tuition. If not, I hope that this issue does go to courts and gets turned down immediately!

[Plantains]

2 of my cousins goto Pitt. This has been coming down the pipes for awhile I'm told.

[Sal Atticum]

You have cousins?  How odd.

[Plantains]

More like brothers though. Except the girl... we don't talk about that...

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Really?!?!This is just ridiculous!  angryfire It seems like the people who want to tax the colleges and universities must not have children attending and they have not recently attended college. I know I still have more schooling to go, but I already have around $40,000 in debt and I only took out enough to pay tuition. All of my other expenses I paid for by having 1-2 jobs while enrolled in school full-time. I know there are other college students that will graduate with more debt than I have, but I really think that adding more to the cost of education is a very idiotic thing to do.

It is ridiculous, but the sad thing is they get away with stuff like this in many areas.  They know that college student often wont vote (especially locally) and they can slide something like this through.

Debt will keep rising and turning away students until something drastic happens.

I am very disappointed in our nation.  icon_pale It seems like they are so focused on stimulating the economy,and so desperate to get money, that it doesn't matter where the government in cities or states gets it from, just so long as they get the money. Education is important and they should have no complaints about colleges and universities. Our generations are the ones that will be taking care of these people in their old age, because we are the future. If they start adding a tax on tuition, I think it will deter more people from college. The U.S. is already a lacking nation of education. Other foreign countries like China, Japan, and even all of Europe outrank the U.S. with the percentage of people who attended/have attended colleges. It's no wonder so many companies are overseas......

Again, its because they know they can target us.  We dont have huge lobbies like the AARP for retired people.  We dont make our voice heard very loudly.

We are behind many countries... we need to a huge revamp.  Do I see it happening?...  Unfortunately not anytime soon.  Maybe they will when they start seeing us fall further and further behind.

Yes, education is expensive,and there doesn't need to be more expenses added to something that is costly already.  cussing I think there are only a few people who attended college without having a part-time job sometime while attending, but that was because they were on full scholarship or their education was paid for by wealthy parents/relatives.

It has cost me a lot, but I think it is worth it!

Is there anyone here in favor of a tuition tax??

More like brothers though. Except the girl... we don't talk about that...

hummm