Harris proposes tuition tax breaks
The bill would allow taxpayers to claim tuition on their state income taxes.
Published April 10, 2007
With tax day approaching, a bill in the House could allow taxpayers at Missouri public colleges and universities to claim tuition on their state income tax in future years.
The bill was introduced in a public hearing March 29 before the House Ways and Means Committee. No action has been taken on the bill since that time.
House Minority Leader Jeff Harris, D-Columbia, the sponsor of the bill, said the tax credit would make a college degree more affordable and prevent middle-class Missouri students and their families from being "squeezed out" of the financial aid picture.
"With tuition increasing, this is a tax cut that would help moms and dads pay tuition," Harris said.
Nikki Krawitz, UM system vice president of finance and administration, said she sees in the bill potential for a positive impact on Missouri students and their families.
"It allows more people to send their kids to school," Krawitz said.
Krawitz said the UM system does not have an official position on the bill, as it still has not been brought to a vote within a committee or before the entire House.
She said additional help for students to deal with rising tuition costs could come in the form of more appropriations by the state government to higher education.
Rep. Carl Bearden, R-St. Charles, a member of the House Higher Education Committee, said increased funding for scholarships would be more beneficial to college students than tax deductions.
"I think we could accomplish more by funding scholarships," Bearden said. "Getting a scholarship is more direct assistance than a tax credit is."
Rep. Ed Robb, R-Columbia, said the bill would provide merely a 6 percent deduction to taxpayers for tuition and would have no affect on rising tuition costs. He said the tax credit would cost the state $95 million.
"There are other options that would be much more beneficial to students and their parents," Robb said. "I think something like this is possible if it doesn't cost as much as this thing."
Robb said scholarships are a better way of assisting students and their families in dealing with the costs of postsecondary education.
"The goal is to get every student a scholarship," Robb said. "It's one alternative to help reduce the cost of higher education. I'm sure it's the best alternative."
Harris said though his bill received appreciation from both parties, Republicans have criticized his bill because the party is not "interested in the middle class," which he said would benefit the most from his bill.