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S POWWOW .-:Tj 4~~.~ ' .: E i=o ::T :::J-- CQ o .... ::s POWWOW .-:tJ 4~~.~ ' .: E .... :'~.;:) ~ ;~~ Washington State "/';:'1 ·;;· ~.:} ; '". .,. Vol. LIII / Winter, 1968 / No.2 '1ncome Tax Cut for ~ ? !' !. ~l::!~ ~ ~r;: ~~>~ ;~~ft;·~' !:(.~~ ,~ " o Income tax credit for those who pay college tui- , tion, on the surface, has a magnetic appeal to all ""­ tax-paying parents of college students. A close l Income Tax Cut for College Bills? 2 examination of the facts demonstrates why many of the major educational associations, including the National Association of State Universities and The Big 25th 4 Land Grant Colleges and the Association of State Colleges and Universities, oppose the proposed ~ ' NAWAMP and Rolamite 6 legislation. The tax credit plan has been before Congress ~ in each of the last three sessions. The so-called ~ The Terrell Itinerary 7 Ribicoff Bill was defeated in the 88th Congress by a Senate vote of 48-45; again in the 89th Con- ~ gress by a 47-37 vote. Last April, the Senate News from Vietnam 8 passed the bill 53-26. It did not come before the .. News Notes 9 House during 1967 but is expected to do so this .. year. Deaths 23 The Ribicoff plan proposes that anyone who .. pays money to a college for tuition, fees and books .... can subtract up to $325 from his federal income tax. (The difference between a tax credit and a "" The Cover: Three members of the 1941 football federal grant is that you collect the credit by with- . team are initiated into the 12th Man Club at the holding payment of taxes.) The plan includes .. ' 42 Reunion Luncheon. They are (left to right) parents, students or anyone who helps pay; it is Felix Fletcher, Walla Walla; Dale Gentry, Portland, not limited to the taxpayer's own children or de­ and Joe C. Beckman, captain, Tacoma. pendents. In order to receive a $325 tax credit, ~ however, payment would have to total at least $1,500 for tuition, fees, books and supplies. Board and room would not be included in the total. The plan works like this. For the first $200 paid for tuition, fees, books and supplies, the tax- ( payer would receive a 75 per cent tax credit or $150 ; on the next $300 paid, a 25 per cent tax ~ credit or another $75; on the next $1,000 paid, a 10 per cent tax credit or another $100-a total and maximum credit of $325. ..,. The credits offer the most help to those who need it the least while giving the least help or -4 none at all to those who need it most. Tax credits would be given parents with in comes up to $57,000. But a family with two children and an income of " $3,000 would get no help since the family is too poor to pay taxes. And the student who makes • $800 a year and who gets no other support is not I-.. Sally Adams, Editor in an income tax bracket where he could get any benefit from the tax credit. The U.S. Treasury De- ~ prtrtment estimates that one million families or POWWOW Washington State is a quarterly publication of self-supporting students would get little or no ben­ Washington State University for its alumni. Second class post­ age paid at Pullman, WA. Change of address should be sent to: efit. POWWOW, Washington State Un iversity, Pullman, WA, 99163. The proposal discriminates against public uni- .. -< 2 r .... College Bills? ..,. .. versities and colleges in favor of high-cost private form of repayable loans. Thus the first full year schools. Many private schools, primarily in the cost of the tuition tax credit proposal ($1.5 billion) ~ East, have tuition well above the $1,500 maximum is fifty per cent higher than the total of all forms set by the Ribicoff Bill. Tuition and fees at public of non-repayable federal aid to higher education ".> institutions are considerably lower. At Washington administered by the bureau ($1 billion). State University, for example, tuition and fees total Families as well as institutions would suffer ... $345 a year with books and equipment estimated from a federal cutback in bureau-administered \r" at $80. Thus the parents of a WSU student would funds. The $1.5 billion in federal funds proposed receive a maximum tax credit of about $205. The through the tax credit route is more than nine .. bill short changes the taxpayers of such states as times the funds requested in fiscal 1968 for educa­ Washington, Oregon, Idaho and California which tional opportunity grants. If the educational op­ .... have made the greatest effort to provide inexpen­ portunity grant program were cut back from its ~ sive higher education of high quality. They would proposed level in favor of the tax credit plan, get the smallest return from the federal tax sub­ financially deserving students would receive even ~ sidy. This is so because the tax credit is geared to less federal assistance than is now possible. .. tuition rates. The lower the rates, the lower the Also the tax credit plan seems to by-pass the , subsidy. constitutional provision against using public funds • The Ribicoff plan, in the long run, may end up for discriminatory purposes. By raising tuition, all costing parents more in tuition and fees for their colleges and universities, whether they adhere to (>. college-bound children. Here is why: non-discriminatory policies or not, could benefit Proponents of the bill have made it clear that from the indirect government assistance provided its essential purpose is to give indirect tax support through tax credit. '\. to educational institutions. This would be accom­ The National Association of State Universities plished by the institutions raising their tuition and and Land Grant Colleges and the Association of fees proportionate to the tax credit granted. For State Colleges and Universities have adopted a example, the university charging $1 ,500 tuition for joint statement of policy positions which says in which the taxpayer would get the maximum $325 part: credit would raise its charges by $325, completely "The associations have consistently recognized offsetting the benefits to the individual. Public the desirability of participation in various types of Y colleges and universities in order to share in the federally-aided programs by both non-pUblic and )' institutional benefits would have to raise tuition public institutions. They view the tax credit pro­ and fees, a step which negates the tradition of posal as inequitable from every standpoint and '4 low-cost education. Raising tuition would further unsound from the standpoints of fiscal policy, edu­ -4 handicap rather than help the one million families cational policy, and national policy in general. .. who already would get little or no benefit from the "The associations take the position that, to the • tax credit plan. extent that Congress finds it in the national in­ Fiscal experts also oppose the tax credit plan. terest to provide general or specific-purpose sup­ ., The Treasury Department points out that it would port from public funds for institutions of higher cost $1.5 billion (the amount of revenue lost) to education, ways can and should be found for .. operate the Ribicoff plan in its first full year. Be­ doing this which retain the principles of public )1 cause this cost is so great, many educators and accountability for the expenditure of public funds, educational associations greatly fear an erosion which are fiscally and educationally sound, and • of the direct federal support now given to colleges which do not in their operation discriminate . J and universities on an equitable basis. against large groups of students and institutions. The total recommended fiscal year 1968 budg­ The tax credit approach does not meet these ~i et of the Bureau of Higher Education, U.S. Office standards. " of Education, is less than $1.2 billion including Washington State University, as a member in­ .'­ facilities aid, library aid, aid to developing coI­ stitution of NASULGC, strongly endorses this state­ l> leges, guaranteed loans, community services, etc. ment. -- Of this amount more than $200 million is in the -Sally Adams, editor 3 The Big 25th o More than 180 Class of 42'ers, relatives and friends took part in the 25th Reunion festivities during Homecoming this fall. The fun got under­ way with a party Friday night at the Pullman Country Club. The big event was the reunion luncheon preceding the football game on Satur­ day. Bob Neilson, Seattle, class president, served as master of ceremonies as well as chairman of the reunion committee. On behalf of the class, he initiated Dr. Glenn Terrell, WSU president and Davidson College Class of '42, as an honorary member of the WSU class. Rich Gay, Prosser, vice president of the student body in 1941-42, spoke on behalf of the class. Alumni Association president, Herb Hemingway, Garfield, and former coach, O. E. "Babe" Hollingbery, Yakima, also participated in the program. The luncheon came to an end with the awarding of special prizes and doorprizes. Rich Gay, Prosser (right) visits with Mr. and Mrs. Ross HancheH (Bonny Jean Howland), Lower Lake, CA, at the Friday night party. ". ~ Bob Neilson, Seattle, MC's the luncheon. • President Terrell signs the registration as an honorary class member. Mrs. Herb Snelgrove (Barbara Storch) (left) and Mrs. Bob Doten (Anne Forrest), Pullman committee members, make name tags .. for the new arrivals Saturday morning . ... Mr. and Mrs. Kendry Gimlin, e'43 (Ellen Dawson), Culdesac, .. 10, check over name tags at the Country Club . .. 0­.. Mrs. Charles Picatti (Margaret Van Winkle), Louis Perkins, Reno (left) and George Wegsteen, Sacramento, CA, congratulate '\. Yakima, wins the big prize, a stadium blanket. each other for winning Cougar caps to keep their heads warm.
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