EDUCATORS PROMISE FIGHT IN SENATE OVER TAX REFORM MEASURE - Vol.13 No.245

Sep 28, 2026

Uploaded by ahduag

Higher education advocates vowed to continue challenging provisions in a broad tax reform bill that passed the House on a compromise offered by Dan Rostenkowski. The measure would take effect in phases, with a nonbinding resolution stating changes would not fully occur until 1987. A joint letter warned that private colleges and universities face serious negative impacts, including limits on tax-deductible charitable giving, restricted access to tax-exempt bond financing, new pension nondiscrimination rules, and taxation of certain scholarship and fellowship amounts.

LanguageEnglish

CategoryExam

FormatPDF

Pages7

Reading Time18 min

AccessFree to download

EDUCATORS PROMISE FIGHT IN SENATE OVER TAX REFORM MEASURE

EDUCATORS PROMISE FIGHT IN SENATE OVER TAX REFORM MEASURE (Cont.)

NATIONAL COLLEGE NEWS PROGRAM TO DEBUT ON CAMPUSES

ITS FUNDING GONE, NATIONAL STUDENT AID COALITION TO CLOSE ITS DOORS

Thursday,December 19,1985 Vol.13,No.245 # EDUCATORS PROMISE FIGHT IN SENATE OVER TAX REFORM MEASURE Higher education advocates vowed yesterday to continue the fight in the Senateagainst what they see as disastrous provisions contained in a sweeping taxreform bill passed Tuesday night by the House. After overcoming some last-minute roadblocks,the House,in a voice vote,ap-proved passage of H.R.3838,a compromise version of President Reagan's taxreform plan offered by House Ways and Means Commlttee Chairman Dan Rostenkow-ski,D-I11.(HED,Nov.26)。The bill technically would become effective Jan. 1,but the House passed a nonbinding resolution 1mmediately after the finalvote,saying many changes would not take effect until 1987. Last week,the House voted to reject a rule to allow the bill to come to thefloor for debate,but after some intense lobbying by Reagan,the bill garneredenough support to win passage(HED,Dec.12)。 Private colleges and universities would not fare well under the measure,andsome provisions of the legislation will have"serious negative"consequencesfor students,faculty and the schools themselves,said the National Associa-tion of Independent Colleges and Universities and the American Council onEducation(ACE)in a joint letter to the House opposing the bill. Higher education will fight those provisions of thegeneral counsel Sheldon Steinbach. Steinbach is urging all private colleges and universities to lobby their sena-tor and to write each member of the Senate Finance Committee,asking committeemembers to withdraw those provisions in H.R。3838 that are harmful to schools."We need broad-based support,"Steinbach said. Provisions seen as harmful are those that would:tax charitable contributions;restrict the access of private institutions to tax-exempt bond financing;sub-ject employer-provided pensions to non-discrimination rules;and includescholarship and fellowship monies in excess of tuition as taxable income(HED,Nov.26). Steinbach said the non-discrimination rules and taxation of scholarships andfellowships provisions included in the bill put higher education in a positionthat is“substantially worse off than under current law.”H.R。3838 would endtax-exempt status of scholarship and fellowship funds used by students to meetroom,board and other living expenses.(more) December 19,1985 # EDUCATORS PROMISE FIGHT IN SENATE OVER TAX REFORM MEASURE(Cont.) The bill also would force colleges and universities to apply expenive nondis-crimination rules to nonelective employer-provided pension plans to determinewhether all plans used by the school are comparable.Under that plan,salaryreduction contributions would be 1imited to $7,000 per year,to be offset byindividual retirement account contributions.Hardship withdrawals would beallowed,but would be subject to a 15 percent penalty tax(HED,Nov.26)。 The bill also would require nonitemizers to make a charitable contribution of$100 or more before it could be deducted from income taxes.Current law,whichexpires Jan.1,allows a deduction for any charitable amount.Also to be taxedwould be large gifts of appreciated property to colleges and universities.Higher education institutions would also be subject to a cap in the amount oftax-exempt bonds they can issue for construction or renovation of campusfacilities. Meanwhile,Congress has until midnight tonight to pass a new continuing re-solution to fund government agencies and the omnibus budget bill.H.R。3128.The conference report to H.J.Res.465,which Congress originally rejected Dec. 16,would fund the remaining federal agencies currently without appropriationmeasures until Sept.30,1986.Both measures,which could come to the floor atany time,are the last remaining transactions Congress must complete beforeadjourning for its holiday recess.--Jennifer L.Janson,Kristina Brenneman # NATIONAL COLLEGE NEWS PROGRAM TO DEBUT ON CAMPUSES Stuffed between music videos and reruns of"The Spike Jones Show,"the Na-tional College Tel

FAQs

What does the article say higher education advocates plan to do in the Senate?

They promise to keep fighting in the Senate over the tax reform bill’s provisions they consider disastrous.

What bill and House action are discussed regarding the tax reform measure?

The House approved passage of H.R. 3838 in a voice vote after a compromise proposal from Dan Rostenkowski, and it also passed a nonbinding resolution about when changes would take effect.

Which tax-related provisions are described as harmful to private colleges and universities?

They include restricting tax-deductible charitable contributions, limiting access to tax-exempt bond financing, applying nondiscrimination rules to certain pensions, and treating some scholarship and fellowship funds as taxable income.

Sep 28, 2026

Uploaded by ahduag