Kevin Cramer’s tax reform bill is bad for higher education, K-12 teachers

Bill would make college less affordable, take money directly out of teachers’ pockets.

Kevin Cramer’s tax plan continues gathering groups that oppose it, as higher education groups and K-12 teachers come out against it. The plan will take away incentives for charitable giving, student loan repayment and out-of-pocket money spent by K-12 teachers.

Higher Education

According to the American Council on Education, the tax code, as currently structured, is designed as a “three-legged stool” for low- and middle-income families to: (1) encourage saving to pay for higher education; (2) help families pay for higher education; (3) assist with repayment of student loans.

According to higher education groups, Cramer’s tax plan will “rob institutions of vital dollars and increase the price of college for debt-laden students and already-strapped families.” Further, the bill eliminates the student loan interest deduction, which currently allows borrowers with student debt to deduct up to $2,500 in interest on their loans.

“Making college less affordable and eliminating incentives for those with student loans is simply wrong,” said Ben Hanson. “At a time when student debt is making it difficult for college graduates to buy a home, start a family and save for retirement, Kevin Cramer is hurting them, and the economy, by supporting this bill. We need common sense solutions to strengthen programs that allow college graduates to help themselves and grow the economy.”

K-12 Teachers

With many states facing budget cuts, K-12 teachers are forced to pay for supplies out of their own pockets. One study found that teachers have spent $1.6 billion of their own money to pay for classroom supplies and teaching materials. On average, teachers spend approximately $500 out of pocket each year. Under the current tax code, teachers may deduct up to $250 from their taxes for what they spend on supplies. Kevin Cramer’s tax plan eliminates this deduction.

“K-12 teachers are indispensable to our communities, and they need a pay raise for all they do for our children,” said Hanson. “Forcing teachers, who help make up the working- and middle-classes, to spend their own hard-earned money on classroom supplies is bad enough. Taking away this critical deduction is mean-spirited and unwarranted. Instead of standing up for North Dakota’s teachers and students, Cramer continues following orders from his political party’s leaders.”