The Fora: A Higher Education Community

General Category => General Discussion => Topic started by: jimbogumbo on March 11, 2022, 09:50:54 AM

Title: Taxin students before aid is deducted?
Post by: jimbogumbo on March 11, 2022, 09:50:54 AM
Seems like, IMHO, a very bad idea: https://www.insidehighered.com/quicktakes/2022/03/11/pittsburgh-council-member-suggests-tax-college-tuition
Title: Re: Taxin students before aid is deducted?
Post by: dismalist on March 11, 2022, 10:04:20 AM
Quote from: jimbogumbo on March 11, 2022, 09:50:54 AM
Seems like, IMHO, a very bad idea: https://www.insidehighered.com/quicktakes/2022/03/11/pittsburgh-council-member-suggests-tax-college-tuition

From the theory of tax incidence, taxing tuition is like taxing sales. Why not? :-)

The suggestion in the article to rather tax non-profit entities amounts to the same thing, just different people are signing the checks. [The entities will raise tuition.]
Title: Re: Taxin students before aid is deducted?
Post by: jimbogumbo on March 11, 2022, 11:31:10 AM
Quote from: dismalist on March 11, 2022, 10:04:20 AM
Quote from: jimbogumbo on March 11, 2022, 09:50:54 AM
Seems like, IMHO, a very bad idea: https://www.insidehighered.com/quicktakes/2022/03/11/pittsburgh-council-member-suggests-tax-college-tuition

From the theory of tax incidence, taxing tuition is like taxing sales. Why not? :-)

The suggestion in the article to rather tax non-profit entities amounts to the same thing, just different people are signing the checks. [The entities will raise tuition.]

I'm sure some will, Carnegie Mellon probably not. It would not be as bad if the proposed tax was based on tuition after aid was applied.
Title: Re: Taxin students before aid is deducted?
Post by: dismalist on March 11, 2022, 12:15:53 PM
Quote from: jimbogumbo on March 11, 2022, 11:31:10 AM
Quote from: dismalist on March 11, 2022, 10:04:20 AM
Quote from: jimbogumbo on March 11, 2022, 09:50:54 AM
Seems like, IMHO, a very bad idea: https://www.insidehighered.com/quicktakes/2022/03/11/pittsburgh-council-member-suggests-tax-college-tuition

From the theory of tax incidence, taxing tuition is like taxing sales. Why not? :-)

The suggestion in the article to rather tax non-profit entities amounts to the same thing, just different people are signing the checks. [The entities will raise tuition.]

I'm sure some will, Carnegie Mellon probably not. It would not be as bad if the proposed tax was based on tuition after aid was applied.

To clarify, tuition will unlikely rise by the whole tax. Instead, the more price sensitive side of the market will pay less of the tax. This may well vary by school.

Before aid, after aid? If the aid is in the form of a tuition discount, yes after aid. [As with the coupons at grocery stores. Sales tax is post coupon.]