US Universities Might As Well Close Now

American universities have had a good run since 1945 powered by state and federal government support as well as donations from alumni, foundations and nice folk.  In rankings US research universities occupy the first four places and 13 of the first 25.  The decrease in state funding is already hammering state schools such as the University of Wisconsin, etc.

The US Congress has applied the killer blow.  By proposing to tax tuition remission, the House of Representatives has essentially made attending graduate school a Darwin test.  Eli's friend Andy Dessler has an op ed in the San Antonia Express-News which looks at what would happen if this bill passed.

This would be a terrible policy because it would hurt one of America’s most prized and valuable possessions: excellence in advanced university research. Graduate students form the backbone of research done at universities in the U.S. When professors proudly talk about the amazing work their lab is performing, the odds are that the critical contributions were made by an army of smart, hardworking grad students.

Andy points out the many benefits to the nation of this research, and why passing this tax would be a disaster. 

Our research universities are the envy of the world. Because U.S. research is so good, students come to us from all over the world. And the U.S. benefits from this because the smartest of these people often stay here after they graduate, adding to our professional research workforce.

Sadly, that horse is already out of the barn. Even if the tuition tax is not in the final bill, international students are already forgetting US universities as places to apply to because completing their degrees with Republicans in power, and even if they are defeated is a chancy game to play with your life.

Companies that provide a tuition benefit to their employees, can rip that sucker up since the benefit might come with a tax liability.  US student contemplating graduate school or taking a job now have a simple answer, take the job, who knows if they will be able to complete the degree. 

But it gets worse, STE grad students mostly have research assistantships.  Humanities, social science and math grad students have teaching assistantships which also have tuition remission.  Who is going to take a chance on starting a degree program with the tuition tax lurking?  And without them who is going to teach the myriad sections of English and Math as well as the Chem and Physics Labs.  Undergrad instruction is going to go full sage on the stage MOOCish.

Still, there is something interesting in the proposals from the Goth-Republican caucus, a tax on university endowments for the Harvard Yales.  Now this is really a dumb idea, but it does set the stage for a wealth tax when reality set in (usual if ever clause inserted here)