From: a_rosati@guvax.acc.georgetown.edu
Newsgroups: soc.college.grad,soc.college.gradinfo
Subject: HR 4418 : NAGPS Sponsorship
Date: 12 Sep 92 11:51:27 -0400
Distribution: world
Organization: Georgetown University

31 August 1992

Dear NAGPS Member,

     The Board of Directors of the National Association of
Graduate-Professional Students has decided to endorse H.R. 4418,
which would restore the tax-exempt status of fellowships and
scholarships.  The bill, introduced by Rep. Tom Lewis (R-FL) on
March 10, 1992 and referred to the House Ways and Means Committee,
currently has 30 co-sponsors.  We urge all NAGPS members to write
their member of Congress, asking them to co-sponsor and support
H.R. 4418, as well as contact members of the Ways and Means
Committee.
    
     Please allow me to explain the current situation. As a result
of the 1986 Tax Reform Act, qualified scholarships are excluded
from gross income only to the extent that they cover tuition, fees,
and required books, supplies, and equipment.  Any amount of
scholarship used by the student for reasonable living expenses
(e.g., room and board) is considered taxable income.  Prior to 1986
all funds from qualified scholarships and fellowships were tax
exempt. 

     H.R. 4418 would help remedy this repressive tax policy by
repealing Section 123 of the Tax Reform Act of 1986, relating to
fellowships and scholarships.  It leaves unchanged that portion of
the Tax Reform Act of 1986 that relates to funds derived from
services performed (e.g., teaching, grading, conducting laboratory
work, etc.).  Despite this limitation, the Board of Directors
supports H.R. 4418 as the first step towards the equitable
treatment of graduate student income.

     In addition, H.R. 4418 provides a mechanism for the refunding
of all taxes paid on fellowships and scholarships since 1986. This
particular section of H.R. 4418 may prove troublesome for its
success at passage.  Therefore, the Board of Directors urges all
NAGPS members to use their discretion when lobbying for this
legislation. 

     If you need further information or assistance, please feel
free to contact your NAGPS Regional Coordinator, or Andrew Cherry,
Rep. Lewis' legislative assistant, at (202) 225-5792.

     Good luck! 

                                        Sincerely yours,

                                        Gina Pearson,
                                        Legislative/Employment
                                        Concerns Coordinator, NAGPS

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This was posted for Ms. Pearson by

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| Anthony V. Rosati              |                                |
| Department of Chemistry,       | "A nation that cannot think,   |
| Georgetown University          |  cannot survive."              |
| Washington, D.C. 20057-2222    |                                |
| A_ROSATI@GUVAX.BITNET          |          - Norman Mailer, 1992 |
| A_ROSATI@GUVAX.GEORGETOWN.EDU  |            National Press Club |
# ======== # ======== # ======== # ======== # ======== # ======== #
| Southeastern Regional Coordinator & Member, Board of Directors  |
| National Association of Graduate-Professional Students (NAGPS)  |
| 1992 - 1993                                                     |
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