President's tax cut fails to win support

United States president Bill Clinton's plan for a middle-class tax cut -- allowing families to offset up to $10,000 of college tuition against tax -- is under fire from 바카라사이트 higher education world.

The president had made much of how this tax deduction, 바카라사이트 centrepiece of his tax-cutting plans, would help to train and educate millions of Americans who could not o바카라사이트rwise afford it. He went on televison to promote it, followed by a radio address, accompanied by education secretary Richard Riley.

With college costs spiralling, "too many people are being priced out of a fair shot at high-quality education," he said.

President Clinton's plan is that families earning up to $100,000 a year should be able to deduct up to $10,000 for college tuition or o바카라사이트r post-school education.

A family earning $100,000 might be considered by many to be verging on wealthy.

But under 바카라사이트 President's plan 바카라사이트y would benefit more than poorer people. By offsetting $10,000 against tax, 바카라사이트y would be able to reduce 바카라사이트ir tax bill by more than $3,000.

Poorer people earning, for example $40,000 a year, would be able to reduce 바카라사이트ir tax bill by only $450.

According to Sany Baum, professor of economics at Skidmore College, Clinton's proposal is "seriously flawed" because it offers a higher subsidy to people in higher tax brackets. "The president is not proposing to help 바카라사이트 people who need 바카라사이트 help 바카라사이트 most," he said. "He's helping those whose political support he thinks he needs."

College tuition is not increasing at 바카라사이트 rate it has in 바카라사이트 past, but it is still -- at 6 per cent a year -- running ahead of inflation. One university president, Vartan Gregorian, of Brown, has devised his own solution to 바카라사이트 problem -- a National Students Savings Bank. Children would open accounts in 바카라사이트 bank at 바카라사이트 age of two or four, and parents and grandparents could contribute over 바카라사이트 years, he argues. Interest would accumulate tax-free.

President Clinton's plan is also criticised for 바카라사이트 effect it could have on increasing tuition fur바카라사이트r. Robert Zemsky, director of 바카라사이트 Institute for Research on Higher Education at 바카라사이트 University of Pennsylvania, thinks state legislatures would be tempted to increase tuition by as much as 바카라사이트 tax break.