On December 20th, Congress approved a $1.5 trillion overhaul of the tax code—which is now on its way to the President’s desk for a signature. No Democrats in either the House or Senate supported the legislation.
Throughout the bill’s journey through the legislative process, tax provisions related to education and the economy were debated in both chambers of Congress. Below is the updated status of these provisions, including how they were incorporated into the final tax bill.
Of Note: The new tax bill includes a 1.4 percent excise tax on endowment income for private colleges with assets valued at $500,000 per full-time student. Lawmakers have estimated this provisions will affect about 35 institutions. Many stakeholders have expressed concern that this new tax will add to costs and hinder the ability of these institutions to provide the highest quality education.
Although the tax bill has been sent to POTUS’s desk, White House officials have reported that the President may withhold his signature until Congress passes legislation to avoid the first Statutory PAYGO sequester. While there was speculation that Congress would not address the impending sequester until after the new year, the newly unveiled short-term spending bill—which will fund the government through January 19th—contains a PAYGO waiver.