01/17/2018
Thank you to Columbia grad student Amanda Rose for sharing her powerful story which illustrates the devastating impact the tax bill have on graduate students and academic research.
Please note that the OP updated their calculations and shared this note:
**Last night, I posted some quick calculations I made regarding how the new Tax Cuts and Jobs Act would affect me as a graduate student. Unfortunately, I made a common error in miscalculating the tax bracket. Thank you to the many people who pointed out this mistake. I in no way wish to misrepresent or deceive what the impact of this bill is going to be and have updated my calculations to be as clear and accurate as possible.**
https://www.facebook.com/photo.php?fbid=10155877275533518&set=a.10150506371068518.390075.648243517&type=3&theater
What can you do to stop it? Call your representatives and organize your campus to join the : https://www.facebook.com/events/300955367071512/
https://gradtaxwalkout.wixsite.com/walkout
ORIGINAL POST:
"Let me apologize in advance for the length of this post. I generally try to avoid talking about politics, as I'm sure everyone hears enough about it all day anyway. But with the passage of the Tax Cuts and Jobs Act (TCJA) through the House and the Senate Finance Committee this week, I need to say something. Around my campus and undoubtedly all other campuses across the country, graduate students have done little else but talk about what will happen to us should this tax bill become law. For those that are unaware, one of the many concerning aspects of the TCJA is that tuition and health insurance waivers will be counted as taxable income, despite the fact that we never see any of that money.
I receive a stipend of $38,352 a year, which compensates for my work done in research labs at the university. At approximately 60 hours of work a week (outside of time spent in class), this works out to be $12.29/hour. This stipend is unusually generous, even for a university in New York City, and I am grateful for this income. However, tuition and health insurance at Columbia University totals at over $51,000 per year. Under the TCJA, I will be taxed as if I bring home $89,352 a year. Below are my calculations as to what the difference is between my taxes with the current law and the proposed TCJA.
In summary, my classmates and I would see an increase of 461% of what we need to pay in taxes per year, from $4,192.80 to $19,338. I live in Columbia subsidized housing (with 2 roommates) and pay $1,100 a month in rent (which is cheap by Manhattan standards). After deducting rent and taxes, under TCJA I am left with $5,814 to live off of, which needs to pay for groceries, utilities, public transportation, and school supplies for an entire year.
This is entirely unsustainable and I'm honestly not sure if I could continue my education under these circumstances. I am not alone in this trepidation, as a number of my friends and co-workers have already expressed doubt as to whether it is worth continuing should the TCJA bill pass. A number are looking into contingency plans. The passage of this bill jeopardizes the future of the entirety of American academia (STEM fields, arts, & humanities), as only the few, independently wealthy could afford such a lifestyle. At a time when politicians already bemoan the hiring of highly qualified, international workers in technology and STEM fields, what is going to happen when intelligent and motivated Americans are driven out of the country to more affordable graduate programs in Europe, Asia, and Australia? Who will be left to advance research in medicine, technology, and engineering to the next level and make a better future for all Americans?
Please, take a moment to research this bill for yourself (https://taxfoundation.org/2017-tax-cuts-jobs-act-analysis/) and contact your senators (https://www.senate.gov/senators/contact/senators) to vote "no" on this bill. Together, we can make a difference."
UPDATE: Editorial note from original poster:
"** APOLOGIES ** - I am a chemical engineer and a biologist, not an accountant, and the fact that these tax brackets are incremental slipped my mind during my original calculations. Under the current law, my taxes are $3,242.80 ($22,089.20 left in "usable" income after taxes and rent) and under TCJA my taxes would be $12,048.00 ($13,104 in "usable" income). The overall percentage increase works out to be 371.5%, still an astronomically high amount. The numbers change but the take home message is the same. Passing this bill is a disaster for all graduate students in every field across the United States."
Source: https://www.facebook.com/photo.php?fbid=10155875801543518&set=a.10150506371068518.390075.648243517
