A Historical Case Study of the Debate Over College Tuition Tax Credits During the 95th Congress (1977—1978)

• In Event: Public Interest 3

Abstract

College tuition tax credits have been a phenomenon in the U.S. for nearly seventeen years since they were first enacted as part of the Taxpayer Relief Act of 1997 (P.L. 105-34), creating the HOPE and Lifetime Learning tax credits (§25A), as well as the Economic Growth and Tax Relief Reconciliation Act of 2001 (P.L. 107-16), creating the Qualified Tuition and Related Expenses tax deduction (§222), and the American Recovery and Reinvestment Act of 2009 (P.L. 111-5), which created the American Opportunity Tax Credit (§25A), temporarily increasing the HOPE limits through December 31, 2017. Tax credits and deductions to pay college tuition costs has become a significant part of the financial aid subsidy provided to students and parents, costing approximately $18.7 billion in tax subsidies in 2013-14 benefiting approximately 13.8 million taxpayers (College Board, 2014). Since the late 1950s, prior to the enactment of the Higher Education Act of 1965 (P.L. 89-329), tuition tax credits were debated by various congresses as a means of assisting families pay college costs. While there were significant debates to enact tuition tax credits early on in the 1960s through the early 1970s, the debate that occurred during the 95th Congress (1977-78) was one of the most spirited and influential ones on this legislation. The purpose of this paper is to examine the central issues of this historic tax policy debate in a case study on tuition tax credits and some of the policy dynamics that resulted from the structure of executive and legislative branches of government in 1977 and 1978.

Author

• Benjamin R Silliman, St John's University