The following in an excerpt from a Paul Krugman op-ed November 14, 2017 NYTs. Should the Republican tax bill pass with these provisions you can’t argue with Krugman’s facts.
But just as with health care he and other liberal progressives miss the underlying issues. The easier we make it for someone else to pay for the things we want, the easier it is to raise the cost for those things and the less we care about the underlying cost.
In health care we care most about premiums when we should care about the cost and use of services.
When it comes to college we care about student loans when we should care about the outrageous tuition, the time it takes to get a degree, the value of degrees and indeed the entire value and efficiency of a college education.
Suppose that a child from a working-class family decides, despite limited financial resources, to attend college, probably taking out a loan to help pay tuition. Well, guess what: Under the House bill, that interest would no longer be deductible, substantially raising the cost of college.
What if you’re working your way through school and your employer contributes toward your education expenses? The House bill would make that contribution taxable income.
What if your parent is a university employee, and you get reduced tuition as a result? That tuition break becomes taxable income. So would tuition breaks for graduate students who work as teaching or research assistants.