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Pittsburgh Tuition Tax Proposal

Ian Scott on Thursday, December 3, 2009 at 3:03:12 pm

Like most American cities, Pittsburgh faces a budget deficit.  Howver, their mayor's proposed solution to the budget gap is much less common - he plans to tax college tuition.

The Wall Street Journal says the proposed 1% tuition tax on college tuition, "appears to be a one-of-a-kind."  It would bring in $16 million in new revenue.

The city has argued that the 1% tax, which would cost $409 a year for Carnegie Mellon undergrads, isn't much for students who receive a great deal of city services.  The city has also pointed out that, due to the large number of non-profit and charitable organizations, 40% of city property is tax exempt, thus leaving few options for raising new funds.

The proposal,  announced by Mayor Ravenstahl last month, has created a lot of controversy.  The plan has made headlines nationwide, and the Pittsburgh Council on Higher Education is lobbying state lawmakers to prohibit taxing students.

Talk about Town-Gown relations!

Click HERE to read more from the Wall Street Journal.

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