Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Stay on top of the latest market trends

Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Photos: Bebeto Matthews, Jae C. Hong, Todd Richmond / AP

While the tax reform conversation has focused on tax cuts for the middle class and families, changes to higher education tax policies, primarily in the House bill, could cause many undergraduate, graduate and doctoral students to see a big tax hike.

Why it matters: Higher education will be a big issue when the House and Senate merge their tax cut bills into a final version. This is also a major partisan issue. 58% of Republicans said colleges and universities have a negative impact on society in a recent Pew survey, while 72% of Democrats said higher education had a positive impact.

What's in the bills
  1. Tuition waivers: In many schools, grad students and doctoral students have their tuition waived in exchange for teaching or heading up research at the university. The House tax bill would make that kind of waived tuition taxable just like regular income. Other scholastic grants and scholarships would not be taxed — only tuition waivers which are in exchange for work.
  2. University employees would similarly be taxed on any tuition waivers or benefits they receive for their children because they work at the university.
  3. Student loan interest: The House bill eliminates the student loan interest deduction, which has allowed graduates to deduct the amount they've paid in interest on their student loans.
  4. University endowments: Both the Senate and House bills propose an excise tax on private college endowments that are more than $250,000 per full-time student. The Senate bill also included a 20% excise tax on any endowments that are used to pay more than $1 million in executive compensation.
  5. State and local tax deductions: The House bill would limit the state and local tax deductions and the Senate would repeal it, which could cause some people to pay more in taxes depending on high their state and local taxes are. This could put pressure on those states to lower tax rates, which could then cut back on the amount of funding for public colleges and universities.
  6. Other: The House bill also eliminates the Lifetime Learning Credit and the Hope Scholarship Credit, which are smaller credits that aren't used as often as some of the other education tax credits.
The facts
  • Nearly 70% of the 3.1 million high school graduates last year were enrolled at a college or university by October 2016, according to the Bureau of Labor Statistics. 59% of students who started on their bachelor's degree at a four-year university in 2009, completed their degree within six years, according to the National Center for Education Statistics.
  • 25% of state spending goes toward K-12 education, and 15% goes toward higher education, according to the Center on Budget and Policy Priorities.
  • The House bill could increase the cost of attending college by $65 billion over the next 10 years, according to the American Council on Education.
  • The council found that more than 145,000 graduate students don't pay tuition, and could end up in financial trouble if they were forced to pay taxes on their tuition waivers.
  • 12 million students used the school loan interest deduction in 2015, according to the IRS.
  • The repealed higher education tax benefits could cost college students and their families $71 billion over the next 10 years, according to an analysis by Congress's Joint Committee on Taxation.

Go deeper: The GOP tax plan could lead to a brain drain

Go deeper

Making sense of Biden's big emissions promise

Illustration: Sarah Grillo/Axios

President Biden's new U.S. emissions-cutting target is a sign of White House ambition and a number that distills the tough political and policy maneuvers needed to realize those aims.

Driving the news: This morning the White House unveiled a nonbinding goal under the Paris Agreement that calls for cutting U.S. greenhouse gas emissions by 50%-52% by 2030 relative to 2005 levels.

Biden pledges to cut greenhouse gas emissions by up to 52% by 2030

U.S. President Joe Biden seen in the Oval Office on April 15. (Photo by Doug Mills-Pool/Getty Images)

The Biden administration is moving to address global warming by setting a new, economy-wide greenhouse gas emissions reduction target of 50% to 52% below 2005 levels by 2030.

Why it matters: The new, non-binding target is about twice as ambitious as the previous U.S. target of a 26% to 28% cut by 2025, which was set during the Obama administration. White House officials described the goal as ambitious but achievable during a call with reporters Tuesday night.

2 hours ago - Health

Health care workers feel stress, burnout more than a year into the pandemic

Photo: Steve Pfost/Newsday RM via Getty Images

More than a year into the coronavirus pandemic, some 3 in 10 health care professionals say they've considered leaving the profession, citing burnout and stress, a Washington Post-Kaiser Family Foundation poll out Thursday indicates.

Why it matters: Studies throughout the pandemic have indicated rising rates of depression and trauma among health care workers, group that is no longer seeing the same public displays of gratitude as during the onset of the pandemic.