| Families who made their best guess as to which of | | | | supported and voted for. The Act created two |
| the Education Tax Incentives would save them the | | | | education tax credits; the HOPE Scholarship Credit |
| most on their income taxes, have put their 2007 tax | | | | (maximum $1,500 a year for 2 years), and the |
| returns to bed. However, for many, a sigh of relief is | | | | Lifetime Learning Credit (maximum $1,000 increasing |
| a bit premature. Countless families, even when | | | | to $2,000 in 2003). |
| assisted by professional tax preparers, chose | | | | Note: A tax deduction lowers taxable income, and |
| incorrectly and will or have significantly overpaid the | | | | the savings depends on the filer's tax bracket. A tax |
| IRS - AGAIN! | | | | credit directly lowers taxes by the amount of the |
| Mark Twain once said, "No man's life, liberty, or | | | | credit, dollar for dollar, regardless of the filer's tax |
| property are safe while the legislature is in session," | | | | bracket. |
| and never have truer words been spoken: | | | | Although it was a step in the right direction, The Act |
| On June 6, 2001, President Bush signed HR 2014 into | | | | fell far too short in providing major tax relief for |
| law. This created The Tuition and Fees Deduction, | | | | college families, especially in view of soaring tuition |
| based on Senator Charles E. Schumer's (D-NY) Make | | | | costs and other related expenses that families |
| College Affordable Act. However, the president | | | | endure year after year. Nonetheless, the real tragedy |
| signed a watered down version and consequently, it | | | | is when the Tuition and Fees Deduction is taken by |
| doesn't work for the families who need it the most. | | | | taxpayers who qualify for The HOPE Scholarship |
| For many years, Senator Charles E. Schumer (D-NY) | | | | Credit or The Lifetime Learning Credit, and |
| tirelessly championed legislation that would allow | | | | consequently, overpay their taxes each year their |
| families, including independent students, to deduct a | | | | student is in college! |
| portion of their college expenses on their tax returns. | | | | Affluent single and head of household taxpayers |
| Originally, the Senator's proposed legislation, the Make | | | | whose adjusted gross incomes (AGI) exceed |
| College Affordable Act, would have allowed millions of | | | | $51,000, and joint filers whose AGI exceeds |
| American families to deduct up to $12,000 per year | | | | $102,000, will not qualify for the HOPE Scholarship or |
| from their total incomes to help reduce the cost of | | | | Lifetime Learning Credit, and are therefore, the only |
| college tuition and related expenses. | | | | ones who actually benefit from taking the Tuition and |
| Unfortunately, to the chagrin of the Senator and to | | | | Fees Deduction. Thus, camouflaged as tax relief for |
| the detriment of untold numbers of taxpayers with | | | | all of America's college families, what Congress |
| college students, HR 2014 offers a dramatically | | | | actually did was Robin-Hoodwink lower and middle |
| reduced Tuition and Fees Deduction of a mere | | | | income families by taking from them and giving to |
| $3,000 for tax years 2002-2003, and $4,000, for tax | | | | the rich! |
| years 2004-2006, (extended to 2007). | | | | Taxpayers only have the option of taking either the |
| The drastic slashing by Congress of Senator | | | | tuition deduction or one of the education credits. |
| Schumer's bill and President Bush's failure to send it | | | | Those families who took the deduction when they |
| back to them is the case in point substantiating that | | | | qualified for either of the education credits, cost |
| our government doesn't give a hoot in hell about the | | | | themselves hundreds of dollars and possible much |
| financial struggle the average parent endures in their | | | | more. |
| endless pursuit of the American dream for their | | | | Think what you may about the Clinton Administration, |
| children. | | | | but remember, it was on his watch that the HOPE |
| Effective legislation to make college expenses tax | | | | Scholarship and Lifetime Learning Credit were signed |
| deductible was long overdue and began with the Tax | | | | into law. It doesn't benefit college families enough, |
| Payer Relief Act of 1997, which Senator Schumer | | | | but it's a good start. |