Winners: Millionaires- with the elimination of the Millionaire Estate Tax
Losers: Students and Teachers
Losers: Grad Students- with the elimination of the Tuition exemption
Losers: Teachers- with the elimination of the tax deduction for school supplies
Losers: Students- with the elimination of the Student loan deduction
GOP Tax Plan: The Biggest Winners and Losers
Student loan borrowers
The GOP plan would scrap the tax deduction for student loan interest payments. Under current law, nearly anyone with student loans can subtract as much as $2,500 in interest payments from their income before calculating taxes. The GOP plan would stick student loan borrowers with a tax hike of up to $625 a year.
Ph.D. students
The plan is an assault on higher education. It taxes free tuition as though it were earned income. Imagine you're a science Ph.D. student working in a lab. Despite years of training, you're not very well paid, making $30,000 a year or so. But you can get by because the university waives your tuition, which might otherwise cost $50,000 a year. The Republican tax plan would redefine that $50,000 in unpaid tuition as income; so instead of paying taxes on $30,000 in salary, you would suddenly get taxed on $80,000 – with no additional cash in your budget to pay the IRS.
Teachers
The GOP plan would end the $250 tax break for teachers who spend their own money on class supplies. (The average teacher spends more than $500 out of pocket for their classroom.)
Losers: Students and Teachers
Losers: Grad Students- with the elimination of the Tuition exemption
Losers: Teachers- with the elimination of the tax deduction for school supplies
Losers: Students- with the elimination of the Student loan deduction
GOP Tax Plan: The Biggest Winners and Losers
Student loan borrowers
The GOP plan would scrap the tax deduction for student loan interest payments. Under current law, nearly anyone with student loans can subtract as much as $2,500 in interest payments from their income before calculating taxes. The GOP plan would stick student loan borrowers with a tax hike of up to $625 a year.
Ph.D. students
The plan is an assault on higher education. It taxes free tuition as though it were earned income. Imagine you're a science Ph.D. student working in a lab. Despite years of training, you're not very well paid, making $30,000 a year or so. But you can get by because the university waives your tuition, which might otherwise cost $50,000 a year. The Republican tax plan would redefine that $50,000 in unpaid tuition as income; so instead of paying taxes on $30,000 in salary, you would suddenly get taxed on $80,000 – with no additional cash in your budget to pay the IRS.
Teachers
The GOP plan would end the $250 tax break for teachers who spend their own money on class supplies. (The average teacher spends more than $500 out of pocket for their classroom.)