July 29, 1997 CONGRESSIONAL RECORD — Extensions of Remarks E1555 TRIBUTE TO THE TUSKEGEE On July 16, I was joined by my colleagues Here are the six provisions: AIRMEN from the Massachusetts delegation and rep- While the Republican House and Senate resentatives of higher education from Massa- bills allow a tax credit equal to 50 percent of HON. GEORGE E. BROWN, JR. chusetts at a press conference on these very tuition costs for the first 2 years of college, our OF CALIFORNIA issues. I was joined by Grace Carolyn Brown, proposal covers 100 percent of costs. And while the GOP measures offer no credits for IN THE HOUSE OF REPRESENTATIVES the president of Roxbury Community College, and Jon Westling, the president of Boston Uni- tuition costs beyond the first 2 years, we sup- Tuesday, July 29, 1997 versity, both of whom do a great job running port a credit equal to 20 percent of tuition Mr. BROWN of California. Mr. Speaker, it is schools in my district. BU and RCC are just 2 costs in the outlying years. Our provision is with the greatest sense of pride that I rise of the 60 colleges and universities in my dis- particularly important to students at schools today, on the floor of the U.S. House of Rep- trict. Their students are among the 190,000 I like Roxbury Community College, where 1,500 resentatives, to honor the Tuskegee Airmen representÐmore students in 1 district than in dollars' worth of additional tax benefits can who earned a glorious place in history through 26 States. make the difference between getting a degree their heroic actions during World War II. I also was joined by Sam Liu, an MIT grad- and going without one. Due to the rigid pattern of racial segregation uate student who organized a petition signed The current House bill includes no deduc- that prevailed in the United States during by 500 students opposing the elimination of tion for student loan interest while ours does. World War II, the War Department began an section 117(d). There was also Roger Sullivan The Senate bill permanently extends tax ex- isolated program in 1941 to train black Ameri- from the Association of Independent Colleges clusion for employer-provided tuition assist- cans as military pilots. Primary flight training and Universities of Massachusetts and Har- ance and does include graduate students but was conducted by the Division of Aeronautics vard University staffer and student Annie Bur- the House bill only extends section 127 of Tuskegee Institute located near the town of ton Byrd. through the year 1997 and does not include Tuskegee, AL. The Tuskegee Airmen were the Here in the Congress, no one has done a graduate students. The Member from the 2d first African-American aviators to serve in the better job of making sure the Tax Code works Congressional District of Massachusetts, Mr. U.S. Armed Forces. to the benefit of the education needs of our NEAL, has worked very hard to get permanent The first class of Tuskegee Airmen was Nation than my colleague from Massachusetts extension of this crucial benefit passed, be- trained to be fighter pilots for the famous 99th who sits on the Ways and Means Committee, cause he knows that if employees have to pay Fighter Squadron, slated for combat duty in RICHARD NEAL. And in the short time they taxes on expensive tuition assistance, many North Africa. Additional pilots were assigned to have been in office, the Members from the 3d will decide to go without the additional edu- the 322d Fighter Group which flew combat and 10th Districts of Massachusetts, JIM cation. along with the 99th Squadron from bases in MCGOVERN and BILL DELAHUNT, have been My colleague from Massachusetts, Mr. Italy. By the end of the war, 992 men had strong and forceful advocates for expanding NEAL, has also shown great leadership on try- graduated from pilot training at Tuskegee, 450 access to higher education. I also want to ing to retain the tax exclusion of tuition bene- of whom were sent overseas for combat as- thank our delegation's resident chemistry pro- fits for graduate students, which the House bill signment. During the same period, approxi- fessor, JOHN OLVER, who now watches out for repeals. This provision would also hurt other mately 150 lost their lives while in training or education on the Appropriations Committee. employees of educational institutions who get When we talk about education what we're on combat flights. tuition benefits. From lay teachers at Catholic really talking about is the future prosperity and The Tuskegee Airmen were revered be- schools to grounds keepers at Boston Univer- security of our country. Nothing is more fun- cause of their reputation for not losing bomb- sity, these people would be forced to pay damental to hopes of getting a good job and ers to enemy fighters. During the course of taxes on the tuition benefits they and their pursuing a rewarding career than education. World War II, they flew more than 1,500 com- families receive. It's the tool that enables people to get the Our measure exempts from taxation any in- bat missions, and downed a remarkable 261 high-wage jobs of the future and grow within enemy aircraft. In addition, this fearless terest accrued on prepaid tuition accounts. It their current careers. makes no sense to levy taxes on education squadron flew over 140 flying missions without There once was a time when higher edu- relief. Led by Gen. Benjamin O. Davis, Jr., the accounts established with the aim of bringing cation was a luxury that few could afford. In- tuition costs within the reach of working fami- first black general in the Air Force, these un- creased Federal support for loans, grants, and sung heroes flew every mission as if it were lies. scholarships has helped open up the Ivory Finally, our alternative eliminates the cap on their personal task to demonstrate the equality Tower to Americans from all walks of life, but tax-exempt bonds issued by private nonprofit of all people, regardless of color or creed. today we've reached a point when the cost of educational institutions and other charitable or- Mr. Speaker, on July 31, 1997, the Arrow- this critical investment in the future is becom- ganizations. This provision is crucial to the head Credit Union, Inland Empire African- ing out of reach. needs of colleges and universities to expand American Chamber of Commerce, Phenix In- The cost of getting a college, graduate, or their facilities for the 21st century. formation Center, and Westside Action Group professional degree has skyrocketed just at a Mr. Speaker, I have the cover letter for the will form a partnership to honor the Tuskegee time when higher education is more important petition that Sam Liu organized and his state- Airmen in San Bernardino, CA. On this special than ever to obtaining fulfilling employment. ment from the press conference which I would occasion, I ask my colleagues to join me and Some experts predict that early in the next like printed in the CONGRESSIONAL RECORD local civic organizations in my congressional century, 75 percent of all jobs will require along with my statement. district in saluting these men for their unsur- some level of higher education. MASSACHUSETTS INSTITUTE passed bravery and patriotism in putting their People of all ages understand the value of OF TECHNOLOGY, lives on the line overseas while confronting ra- education. The fastest growing student popu- Cambridge, Massachusetts, June 30, 1997. cial injustice at home. We recognize their sac- lation in the United States consists of people Hon. JOSEPH KENNEDY, rifice and honor them for their service to our over 40 who are returning to school to gain U.S. House of Representatives, country. new skills, who understand that what you earn Washington DC. f depends on what you learn. DEAR CONGRESSMAN KENNEDY: We, 500 MIT That being the case, why are we looking at graduate students, write to express our great IN SUPPORT OF EDUCATION TAX a tax package that pretends to boost edu- shock and disappointment regarding the pro- BENEFITS posed elimination of Subsection 117(d) of the cational achievement but really only works for internal revenue code which excludes tuition the wealthy? The Republican tax measure from taxable income. HON. JOSEPH P. KENNEDY II does little or nothing for the millions of working A graduate teaching or research assistant OF MASSACHUSETTS people who are going to school part-time while who receives a stipend of $1300/month and IN THE HOUSE OF REPRESENTATIVES holding down a job and raising a family. tuition waiver of $22,000/year (excluding sum- The education-friendly tax provisions de- mer tuition) will expect to pay $650/month in Tuesday, July 29, 1997 scribed in our letter to the conferees is de- State and Federal taxes under the proposed Mr. KENNEDY of Massachusetts. Mr. signed with working people in mind. It has new legislation. For many students this is a 3.5 times increase in tax! Speaker, I rise today to highlight provisions of been endorsed by over 25 college and univer- The tuition waiver granted by MIT for the pending tax bill that would affect higher sity presidents and represents real help for the graduate teaching and research assistants education. Some of the proposals are long educational ambitions of our people. We urge makes graduate school a financially viable overdue, whereas others should never even the tax conferees to include them in the final opportunity for us. If tuition is now rede- have been considered. conference report. fined as taxable income, many of us will no E1556 CONGRESSIONAL RECORD — Extensions of Remarks July 29, 1997 doubt be driven out of graduate school and and keep Section 117(d) intact. We would also H.R. 1855 does to protect them? First of all, away from careers in research and teaching. like to thank Representatives Kennedy, Neal it waives the entire Magnuson-Stevens Act, as The proposed changes in tax code will force and McGovern and the other members of the it must because what it attempts to achieve is universities to dramatically increase teach- Massachusetts delegation for their leader- ing and research assistant salaries to main- ship and support on behalf of graduate edu- flatly prohibited by that act. Economic alloca- tain a reasonable standard of living for grad- cation. tion decisions, such as this one, must be ``fair uate students. In turn, this could increase and reasonable to all fishermen'' under the f tuition for undergraduates and dramatically Magnuson-Stevens Act. Prohibiting a single increase pressures on already burdened fed- MORATORIUM ON LARGE FISHING fully permitted U.S. vessel from fishing while eral research programs. The proposed elimi- VESSELS IN ATLANTIC allowing in thousands of other vessels with far nation of Subsection 117(d) is a dramatic step greater capacity most certainly fails this stand- in the wrong direction. SPEECH OF ard. Although larger than the bill's size thresh- The new provisions will make graduate school unaffordable to millions of Americans HON. JACK METCALF olds of 165 feet and 3000 horsepower, the throughout the next decade. We respectfully OF WASHINGTON freezer trawler Atlantic Star takes only 250 mt ask you to work against the new legislation IN THE HOUSE OF REPRESENTATIVES of fish per day, because it catches only as which eliminates Subsection 117(d) of the much as it can freeze in a day. However a IRS code and to support provisions which are Monday, July 28, 1997 boat that comes under the size thresholds can more encouraging of graduate education. Mr. METCALF. Mr. Speaker, I rise in oppo- easily take 500 mt per day or more, twice as The future of our nation requires it. sition to H.R. 1855 and to express my strong much as the Atlantic Star. How serious can We thank you for your cooperation, concerns with this bill. We have heard much Sincerely, we be in protecting the stocks when this bill Graduate Students at the Massachusetts today about the Atlantic herring and mackerel imposes no limit at all on the number of these Institute of Technology fishery stocks, as if somehow they are in dan- 500 mt per day vessels that come into these ger. Yet this bill is not really about the fishery fisheries, yet a single vessel taking half as resources at all. It is about competition. It is STATEMENT BY SAM LIU, GRADUATE STUDENT, much per day is legislated out of business? about changing the rules in the middle of the THE MASSACHUSETTS INSTITUTE OF TECH- What is perhaps even more surprising is NOLOGY, JULY 16, 1997 game. that while this bill puts an American company My name is Sam Liu. I come from Wash- It is about destroying an American company out of business and destroys American jobs, it ington Crossing, PA, and I am a doctoral whose principals are fishermen from Washing- does nothing to prevent Russian-flag process- candidate in economics at MIT. ton State and from Maine. This company has ing vessels of similar size from continuing to The current House tax proposal would invested in a $40 million project based on operate within our waters processing the same eliminate the tax exempt status of tuition every known fishery management policy and species of fish, employing Russian crews and waivers for graduate research and teaching law on the books. Policies that encouraged paying no Federal income taxes. What is assistants (known as RAs and TAs). There the development of vessels of this size are wrong with this picture? The Magnuson-Ste- are over 2,700 RAs and TAs at MIT who work completely reversed by this Federal legisla- with faculty in teaching and research and vens Act was supposed to give U.S. vessels who rely on these waivers to make graduate tion. In fact, this company's vessel, the Atlan- priority over foreign vessels, yet this bill would school an affordable opportunity. The elimi- tic Star, is the only vessel that will be legis- reverse that policy as well. nation of Section 117(d) of the tax code would lated out of existenceÐand into bankruptcyÐ This bill is an unwarranted Federal interven- have grave consequences for graduate stu- by enactment of H.R. 1855. Such a result is tion in a system that is working and needs no dents and for higher education. not only bad fishery policy, it is bad Govern- help from Washington, DC. If it is to be en- The typical MIT graduate student relies on ment policy and is manifestly unfair. We here acted, however, it should at least include a a research or teaching assistantship to pay in Congress should be trying to prevent Gov- for his or her schooling. The assistantship savings clause to allow those projects that are covers the cost of tuition and pays a stipend ernment takings of private property, not facili- in the pipeline and whose principals have in- of about $1,300 per month to cover our living tating them, as this legislation most certainly vested in reliance on existing law not to be pe- expenses. Currently, under Section 117(d), does. nalized. I am unaware of a single fishery man- only the stipend portion of this award is In 20 years of managing our fisheries re- agement plan anywhere in the country that taxed by federal and state income taxes. sources, this is the first bill ever to waive the has not accommodated projects in the pipeline After taxes, the typical stipend for an un- entire Magnuson-Stevens Fishery Conserva- when new rules are adopted. We regularly married student amounts to about $1,100 a tion and Management Act. It preempts the Re- adopt savings clauses in Congress to prevent month. gional Fishery Management Councils and at- exactly the kind of inequity that this bill, in its If the current House tax proposal were to tempts to micromanage the Fishery from become law, my taxes and those of my fellow present form, will deliver to this single com- graduate students would increase dramati- Washington, DC. And why? Because it is the pany. cally. Our tuition waivers would be consid- only way that competitors can keep a single We can do better and we should. This kind ered taxable income. This means that our large vessel, the Atlantic Star, out of the fish- of legislation is not needed, it is bad policy, it taxable income will increase by the $22,000 ery. This boat presently meets all necessary destroys American businesses and I urge you cost of MIT’s tuition. Instead of paying taxes requirements. It has all permits needed for to oppose it. on $12,000 for the academic year, I would these fisheries. It is a U.S.-built, U.S.-flag, have to pay taxes on $34,000. That would in- LEGISLATION TO IMPOSE A SIZE LIMITATION ON U.S.-owned and U.S.-crewed vessel that will ATLANTIC MACKEREL AND HERRING FISHING crease my taxes by over 300 percent. My sti- generate over 100 new jobs, both on board pend would be reduced to less than $600 per VESSELS WOULD NOT PROTECT THE FISHERY month. It would be virtually impossible for and on land, as well as $25 million per year RESOURCE WHILE LEGISLATING INTO BANK- me to live on this small amount of money. in benefits to the U.S. economy. RUPTCY A $40 MILLION U.S.-FLAG FISHING My monthly rent for a shared apartment is This vessel is presently in the shipyard VESSEL PROJECT AND COST OVER 100 U.S. more than $400/month. The tax proposal being refitted to fish mackerel and herring JOBS would leave me with less than $200 a month stocks that are so strong that Government sci- Throughout the 1990’s the consistent fish- to cover food, books and other expenses. entists have for years characterized them as eries management policy of the Regional Other students have families they must take underutilized. The most recent information Fishery Management Councils and the fed- care of and have even greater expenses. from National Marine Fisheries Service eral government has been to encourage American development of the abundant At- Many of my fellow students have told me [NMFS] scientists tells us that ``the Northwest that if Section 117(d) is eliminated, they lantic mackerel and herring pelagic re- would not be able to continue their graduate Atlantic mackerel stock is currently at a high sources, and to do so with large vessels. In studies. level of biomass and is underexploited.'' In reliance on that policy, the owners of the At- If the tax proposal is passed, and if MIT fact, the Spawning Stock Biomass [SSB] is an lantic Star commenced a $40 million vessel were to raise our stipends in order to com- incredible 2.1 million metric tons, yet last project with the first large U.S. boat ever de- pensate us for the huge decline in our net in- year's total reported domestic landings were signed exclusively for these fisheries. Now come, the Institute would see its costs in- less than 16,000 mt. The story is the same for legislation has been introduced which would crease by over $19 million annually to retain Atlantic herring, with NMFS scientists calling reverse that policy, impose a ‘‘moratorium’’ its RAs and TAs. These costs would be trans- to limit entry of some large vessels (while lated into either sharp cutbacks in teaching the stocks extremely underutilized with a bio- allowing others in), and destroy this invest- and research programs or higher tuition fees mass of 2.2 million mt and domestic landings ment before the Atlantic Star is even deliv- for undergraduates. of about 100,000 mt. ered from the yard where refitting work is My fellow graduate students and I urge Even assuming that these fishery stocks now underway. While there are legitimate Congress to keep our tuition waivers tax-free were somehow at risk, what is it exactly that questions as to whether Congress should be