Campaign 2010

Aug 16, 2006

Rahm Emanuel, Paul Hodes Unveil College Tax Plan for Middle Class Families

DCCC Press

Aug 16, 2006

Rahm Emanuel, Paul Hodes Unveil College Tax Plan for Middle Class Families

While Charlie Bass voted with Republican leadership for the largest cuts to the student loan program in history, Paul Hodes proposes a better tax plan for making college more affordable

Since George Bush was elected:

  • From 2000-2005, tuition for New Hampshire residents at public New Hampshire colleges and universities increased 27.3%.
  • From 2000-2005, tuition for New Hampshire residents at New Hampshire community colleges increased 28.4%.
  • From 2000-2005, tuition for New Hampshire residents at the University of New Hampshire increased 24.8%.

(Concord, NH) – Today, Democratic Congressional Campaign Committee Chairman Rahm Emanuel and Democratic congressional candidate Paul Hodes pledged to support new tax breaks to make college more affordable for middle class families. Earlier this year, Congressman Charlie Bass worked with President Bush to enact the largest student aid cuts in history.

“New Hampshire families and students can not afford another two years of Charlie Bass’ brand of leadership. Instead of taking care of middle class families, Charlie Bass has rubberstamped the failed agenda of the Bush Administration by voting for record cuts to student aid and failing to offer real tax relief to make college more affordable,” said Rahm Emanuel, Chairman of the Democratic Congressional Campaign Committee. “This election is about changing the priorities in Washington. Paul Hodes will be a Congressman who will put the people of New Hampshire ahead of Washington special interests.”

“This Congress has made it harder for kids to afford a college education,” said Hodes. “This proposal will make it easier for New Hampshire families to send their kids to college.”

The College Tax Credit Proposal:

The existing education tax incentives are overlapping, contradictory and confusing. These characteristics deter families from pursuing incentives to which they may be entitled and lead to headaches and errors for those who do apply. A better way to go is to create one easy-to-use credit encompassing the best characteristics of the existing incentives while eliminating unnecessary repetition and paperwork.

Rahm Emanuel and Paul Hodes pledged to support a refundable tax credit replacing the five existing education tax incentives (the Hope Scholarship, the Lifetime Learning Credit, the deduction for higher education expenses, the exclusion of employee-provided education benefits, and the exclusion for qualified tuition reductions) by providing a $3,000-a-year credit to students for four years of college and two years of graduate school.

How much would the plan pay for?

This credit would cover a significant part of the average annual tuition at public colleges and universities. The College Tax Credit will cost approximately $175 billion over 10 years.

How would the plan be paid for?

The cost of the four incentives would be fully paid for by consolidating or eliminating 68 existing tax breaks worth more than $2.5 trillion over 10 years.