Sunday, March 18, 2012
Saturday, March 03, 2012
Taxing College Tuition
Looks like the minimum tuition bill is dead. However, I found this interesting.
Kavanagh said, though, that ignores the other problem he wants to address: some students subsidizing others.
Written policy of the Board of Regents requires that at least 14 percent of what students pay in tuition be set aside for need-based financial aid. But the regents have currently set that figure at 17 percent.
“It’s the middle and upper-income students who pay full or almost full tuition, part of which is being diverted for the more needy students,” Kavanagh said.
I knew this was happening, but I didn't know it was a specific Board of Regents policy.
From an economic perspective, this is a tax. It is a tax on students used to subsidize other students.
What surprises me is that from a political perspective we allow an appointed board to levy a tax and engage in income redistribution.