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PAR4THECOURSE

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"It is a thousand times better to have common sense without education than to have education without common sense." - Robert Green Ingersoll
Articles Posted: 13  Links Seeded: 27912
Member Since: 8/2009  Last Seen: 2/09/2012

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Pittsburgh eyes students' wallets

Seeded on Mon Nov 16, 2009 10:45 AM EST
Read ArticleArticle Source: USA Today
education, colleges-and-universities, tuition-tax
Seeded by Par4TheCourse
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Pittsburgh wants to tax one of its most abundant resources: students.

The city is home to seven colleges and universities, and though their real estate is tax-exempt, their tuition isn't, says Mayor Luke Ravenstahl, who plans to impose a 1% tax on tuition as part of his budget for 2010.

Nearly 100,000 students study in Pittsburgh, and "they're not paying a dime for any city services they might receive," Ravenstahl says. The 1% tax would range from $20 for students at Carlow College to $400 for students at the city's priciest university, Carnegie Mellon. It would generate $16.2 million next year, according to the proposed budget.

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  • Public Discussion (9)
jameseg

Taxing tuition seems unusual to me, but I don't know why since so many other things are taxed.

  • 2 votes
Reply#1 - Mon Nov 16, 2009 11:00 AM EST
Par4TheCourse

Jameseq - If that means they haven't taxing the tuition... does that also mean that the colleges and universities haven't had to pay taxes on the income of tuition ?

  • 2 votes
#1.1 - Mon Nov 16, 2009 11:03 AM EST
jameseg

Par4TheCourse, my understanding is that college tuition only pays for part of the cost of operating colleges, so presumably there is no profit earned by the schools, thus no tax paid by the schools on tuition.

And the public colleges and universities are partially funded by tax money.

Perhaps traditionally the purchases in communities by employees and students at colleges and universities and the taxes paid by school employees as well as taxes paid by private businesses (and their employees) who sell to the students and staff made it a positive situation for communities without taxing tuition.

But I don't know.

  • 2 votes
#1.2 - Mon Nov 16, 2009 11:17 AM EST
Par4TheCourse

Jameseq - So.. in essence / reality - we are paying for people to go to Harvard and Yale?

  • 1 vote
#1.3 - Mon Nov 16, 2009 11:24 AM EST
jameseg

Par4TheCourse, regarding your comment #1.3:

How do you figure that?

  • 1 vote
#1.4 - Mon Nov 16, 2009 11:35 AM EST
Par4TheCourse

If our tax dollars are going towards colleges & universities..

  • 1 vote
#1.5 - Mon Nov 16, 2009 11:40 AM EST
jameseg

Par4TheCourse, our tax dollars go toward public universities supported by states, not private ones. Are the two you mentioned in comment #1.3, Harvard and Yale, both private schools?

  • 1 vote
#1.6 - Mon Nov 16, 2009 7:38 PM EST
Par4TheCourse

Indirectly we as taxpayers do pay for students to go to school whether it be from Hope or Pell Grants or government student loans.

  • 2 votes
#1.7 - Mon Nov 16, 2009 7:49 PM EST
jameseg

Par4TheCourse, your comment #1.7 makes a good point. It would be nice if the quality of our colleges and universities was improved so we got a better return on the investment.

  • 2 votes
#1.8 - Tue Nov 17, 2009 6:29 AM EST
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