Amy Bragg Carey: Tax bill impacts education, workforce readiness

House and Senate leadership have been working to reconcile differences between the two versions of the new tax bill. It is predicted that the House version will cost students and families $71 billion more through changes to higher education tax benefits, according to the Joint Committee on Taxation.

Higher education transforms graduates’ careers and earning potentials. People older than 25 with a bachelor’s degree earn 67 percent more per week and are only about half as likely to be unemployed as those with just a high school diploma, according to the Bureau of Labor Statistics. This ultimately translates to graduates paying higher taxes and relying less on the social safety net.

Keeping higher education affordable is important to enable some graduates to pursue important — but underpaid — helping professions. Graduates of Friends University and other faith-based universities are more likely to go into service-oriented careers. Our graduates are future teachers, pastors, therapists, social workers and correction officers. And with the growing importance of the knowledge economy for global economic competitiveness, now is not the time for the United States to retreat and make higher education less affordable for those who need it most.

Here are some of the negative aspects of the tax reform plan:

▪ Taxing employer-provided education assistance will hurt our workforce. Under current law, employers can provide up to $5,250 each year in tax-free education assistance. This can help their employees earn an associate’s degree, garner technical education, complete a bachelor’s degree or even pursue advanced degrees. Many local employers make education assistance available to their employees, and this assistance is good for the employer, the employee and Wichita’s workforce. As we seek to grow our skilled and educated workforce in Wichita, tax-free education assistance is critical. Under the House’s tax bill, this assistance would be taxed, which will discourage employees from using this benefit.

▪ Abolishing the Lifetime Learning Credit will hurt non-traditional students. Non-traditional students make up an ever-increasing part of student population. In this digital age, the traditional, full-time, four-year residential experience is no longer the standard. At Friends, we have more than 900 full and part-time students in our degree completion, professional and graduate programs. Repealing this credit, as the House bill does, undermines the work that colleges and universities have done to make higher education more widely available.

▪ Changing incentives for charitable donation will significantly reduce donations to colleges and universities, as well as other charities. Doubling the standard deduction will lead to fewer taxpayers itemizing their deductions. The Tax Policy Center estimates the House bill would reduce individual charitable giving by about $12.3 billion to $19.7 billion, per year. Many gifts that come to Friends are small, yet greatly appreciated donations from alumni. Under this tax bill, we would stand to garner less money to support our students and advance our mission.

Please join me in encouraging our elected officials to support the following amendments to the proposed reforms: Lower the standard deduction to $16,000 to encourage charitable giving. Keep the Lifetime Learning Credit for students and their families. Keep tuition benefits as tax free for employees.

Together we can be champions of education and develop the talent needed for Wichita to continue to thrive.

This story was originally published December 15, 2017 at 4:30 AM with the headline "Amy Bragg Carey: Tax bill impacts education, workforce readiness."