Paul L. Caron

Tuesday, November 10, 2009

Pittsburgh Mayor Proposes 1% Tuition Tax

Pittsburgh's Mayor Says He'll Pursue 1% Higher-Ed Tax (Pittsburgh Post-Gazette, ):

Pittsburgh Mayor Luke Ravenstahl plans to propose a 1% college-education privilege tax to council today, in a move that's likely to set off a fight with the city's schools of higher learning.

College and university representatives met with the mayor on Wednesday and argued against the tax, which would be assessed on a college student's tuition. It technically would not be a levy on the students or their schools, but rather on the privilege of getting a higher education in Pittsburgh. ...

The tuition tax would raise around $16 million a year.

(Hat Tip: Inside Higher Ed.)  Prior TaxProf Blog coverage:

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I can't believe this!! This man wants to tax a group of people where 87% of them have to request financial aid in order to go to college and pay for books... Students that spend their money in the city and pay taxes when they do, students that struggle form day to day just to make ends meet... Graduate students that get very minimal stipends and pay city taxes on that small amount of money....using the students to pay off the issues that a city has developed independent of the students is by no means a "fair tax" The city's money issues would more than likely be relieved if Ravenstahl concentrated his efforts on finding a way to bring industries to the city that will retain the students after they graduate!! the first thing a student does when they finish is LEAVE PITTSBURGH to find a job in a REAL city! try to stop that from happening and you will retain tax paying citizens......

Posted by: Afroscience | Nov 10, 2009 8:54:07 AM

Some of the most dysfunctional governance can be found in the University systems. Universities are notorious for their poor stewardship of revenue. This is probably why tuition inflation is historically double that of average inflation. Adding a tax on top of overpriced tuition is another reason to seek education elsewhere.

Posted by: Tom Lansky | Nov 10, 2009 8:17:22 AM

Obviously this is because I sent my son to Pitt. What's Glenn Beck's number?

Posted by: Michael A. Livingston | Nov 10, 2009 7:42:48 AM