Mr. Speaker, I would like to, first of all, thank my colleagues on the Ways and Means Committee for all their help and their hard work on moving this bill forward. I would also like to thank Chairman Camp for his leadership and for his…
Mr. Speaker, I would like to, first of all, thank my colleagues on the Ways and Means Committee for all their help and their hard work on moving this bill forward. I would also like to thank Chairman Camp for his leadership and for his dedication in helping American taxpayers and families, which is really what this bill is about.
Coming from two hardworking parents with no more than a ninth grade education between them, attending college was little more than just a dream for me growing up. Yet, with my parents' support and some hard work, I was able to be the first of my family to attend college and go on to graduate with a degree in nursing. This has allowed me to spend over 40 years working as a nurse in the health care industry.
Just as this dream was for me, pursuing higher education is a dream for millions of children and their parents across this great Nation. It is a well known fact that the cost of education is climbing and that, for far too many, the ability to save and pay for college without ending up under a mountain of debt is simply out of reach.
Today's broken Tax Code does little to ease that financial burden or to even provide a sense of security that education will be a reality in the future. That is why, under Chairman Camp's leadership, I worked across the aisle with my colleague, Danny Davis, as the chair and cochair of the Ways and Means Committee's Education Tax Reform Working Group last year.
Over the course of our 7-month bipartisan working group meetings, frustration with the Tax Code was a common theme of what we heard. For instance,
there are currently 15 different tax benefits related to education. Four of those are designed to help individuals save prior to becoming a student, nine are available for while the student is in school, and two exist for when the student has completed his or her education.
It was overwhelming when we had tax experts explain it, so it was not difficult to imagine how parents trying to navigate these 90 pages of IRS instructions would simply toss up their hands and say, ``I give up.''
That is why the work that Mr. Davis and I did during the time together on this Education Tax Reform Working Group didn't end when we delivered our report to our colleagues. Instead, our desire to provide at least some relief from that frustration led the two of us to work to see how we could clean up the Code and help families struggling to finance education costs.
That process led us to introduce H.R. 3393, the Student and Family Tax Simplification Act. Now, this legislation consolidates four existing education provisions--the Hope credit, the American opportunity tax credit, the lifetime learning credit, and the tuition deduction--into a single, modernized and strengthened AOTC.
Streamlining the number of education provisions and retooling those that are most effective allows us to simplify the Code and reduce some of the confusion that exists today. As a result, students can spend less time figuring out how to finance the cost of education and more time developing the skills they need to succeed in our knowledge-based economy.
Mr. Speaker, I think we all can agree that it ought to be easier for any family to plan, save, and invest in education. Everyone in this Chamber can agree that we should do everything that we can to help American children attain higher education and achieve their dream.
So I am proud that, as the chairman has already referenced, the American Association of Community Colleges, the Association of Community College Trustees, the National Association of College Stores, and the United States Student Association--the United States Student Association--have announced their support for this bill.
Now I ask for my colleagues in the House to join me in supporting this commonsense measure to help American students and families.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I yield myself such time as I may consume.
I do want to say that this was an incredible experience for me to be able to work with such a fine gentleman as Mr. Davis.
We began this process with the chairman giving us an opportunity to take a look at this very complicated group of tax provisions in our code. What we found, with the Joint Committee on Taxation helping us, as I referenced in my opening remarks, there are 90 different pages, no less the fact that there are provisions that step on top of one another, and we actually asked the Joint Committee on Taxation, to help simplify this, to do a diagram for us, just a flowchart.
What we found was, they came back and said this is so complicated that we can't even do a flowchart that would make sense. So we set out asking various groups to come and talk to us. These went all of the way from the very conservative, the very progressive side, think tanks, universities, colleges, those who represented the 529 provision, and to just come and let us know about what they thought about what was currently in the code.
We heard consistently over and over again, it didn't matter where they were on the spectrum, we heard this is so complicated that people are not even using it because they can't figure out. As a matter of fact, there is a GAO study that indicated that 1.5 million tax filers who qualify for either the tuition and fee deduction of the lifetime learning credit in 2009 did not even claim the credit or the deduction because of its complication.
So it was my honor to work with my esteemed colleague in going to work to say: What can we do to simplify this so that we can make sure that people who really need this assistance are going to get that assistance that is there in the code but they can't even figure it out?
So after about 7 months, hammering back and forth about what we felt would best fit the needs of the students of this country and help to get them a start in college, to get them going, to be sure that they would have that opportunity to use those tax credits, we came up with this product. We then rolled it out with a press conference, and I am very proud to say that this was an effort of bipartisanship, one that I think if we could do more of that here in Congress, we would be accomplishing a lot. So it really is my honor to stand here today with my colleague who we worked so well together on this.
I reserve the balance of my time.
Mr. Speaker, I yield such time as he may consume to the gentleman from Michigan (Mr. Camp), the esteemed chairman of the Ways and Means Committee.
Mr. Speaker, I yield myself such time as I may consume.
What I would like to do is read from a letter that we received in support of
this legislation from the American Association of Community Colleges and the Association of Community College Trustees.
I am just going to lift a couple of paragraphs out of here that I think address some of the responses from my colleagues on the other side of the aisle. I am only going to read three pieces, although there are more.
This is why they say that they believe this benefits college students. I want to read the one that says it ``makes AOTC Permanent: Currently set to expire at the end of 2017, the AOTC is the most important source of support for college students in the Tax Code. H.R. 3393 makes the benefit permanent and ensures that it will remain in place for students and families.''
The chairman referenced that just a few moments ago.
Another paragraph: ``Creates better alignment with the Pell grant: Currently, an estimated 1 million college students with unmet financial need do not receive any benefit from the AOTC due to its poor coordination with the Pell grant program. The vast majority of these students attend low-cost institutions, particularly community colleges.''
This bill remedies this situation.
Then the last piece: ``Indexes the AOTC to inflation: H.R. 3393 recognizes that college prices are not static and adjusts the AOTC for inflation starting in 2018.''
So I believe that that speaks to those pieces that we said are so important in this reform.
Now, I yield as much time as she may consume to the gentlewoman from Washington (Mrs. McMorris Rodgers), the leader of our conference.
I am ready to close.
Mr. Speaker, I reserve the balance of my time.
Mr. Speaker, I could say a lot of things, but I don't think there is any better way for me to conclude than for me to read a letter that I will submit for the Record from a student who actually sent this to me today.
I do want to read it, but I think you will see after I read it that the emphasis here is that we are helping those
who need help the most by what we are doing with the simplification of this particular part of the Code.
For the sake of the identity of the person, I am going to use the name Nancy.
Let me read this to you:
Dear Congresswoman Black, my name is Nancy, and I attend
Atlanta Technical College. The additional $500 in refunds in
your bill for students like me will be extremely beneficial.
I am the mother of five, full-time worker, and student.
Although I intend to continue my higher education once I
graduate from the Atlanta Technical College, I have found out
my Pell grant will expire next semester. I now find myself in
the position of taking out loans for future semesters to make
sure my tuition and books are paid for.
I plan to use my taxes to help with this dilemma. The
additional $500 may not seem like it would cover a lot, but
in my case, it will cover at least one three-credit class or
at least three of my textbooks. I would love the opportunity
to have an option of using these moneys that are outright
mine than to put myself in debt more by taking out a full
amount of any loan.
My only hope is that you take this letter into
consideration, for there are many others out there in my
predicament.
Dear Congresswoman Black, My name is Nancy and I attend
Atlanta Technical College. The additional $500 in refunds in
your bill for students like me would be extremely beneficial.
I am a mother of 5, full time worker and student. Although
I intend to continue my higher education once I graduate from
Atlanta Technical College, I have found out my Pell grant
will expire next semester. I now find myself in the position
of taking out loans for future semesters to make sure my
tuition and books are paid for.
I plan to use my taxes to help with this dilemma. The
additional $500 may not seem like it would cover a lot, but
in my case, it will cover at least one 3 credit class or at
least 3 of my textbooks. I would love the opportunity to have
an option of using monies that are out right mine, than to
put myself in debt more by taking out the full amount of any
loan.
My only hope is that you take this letter into
consideration, for there are many others out here in my
predicament.
I think there is no better way than to end with something that comes from the heart of a student who is working so hard. She has five children and is a full-time worker and student. Because of the refundability of this tax provision, if it were placed into law, you can see how it would really help those who we are trying to help the very most.
So I would urge my colleagues, for the sake of helping our students, especially those who are at the lower and middle income, to support H.R. 3393, the Student and Family Tax Simplification Act, and I yield back the balance of my time.