Unfortunately, a little-noticed provision in President Trump’s sprawling new tax law is treating middle- and low-income college students like trust-fund babies – a tax law established 33 years ago to prevent wealthy parents from funneling money to their children to lower their tax burdens.
- What does this provision do to students?
- How many undergraduates and graduate students are affected?
- What range of taxes are levied on unearned income per the new tax law?
- Why wasn’t it fixed in the draft stage?
Green, E. (2019). Low-Income College Students Are Being Taxed Like Trust-Fund Babies. New York Times, May 17 (Retrievable online at https://www.nytimes.com/2019/05/17/us/politics/college-scholarships-tax-increases.html)