Carnegie Mellon University

November 11, 2017

Dear Members of the Carnegie Mellon University Community,

As a leading research university, educating students and achieving breakthroughs at the nexus of technology and human life, Carnegie Mellon University is a key contributor to the growth of the nation’s economy. At the same time, a healthy economy is critical to the university’s ability to pursue its mission. For those reasons, the university appreciates efforts to spur growth and reduce waste and inequity through tax reform.

But as Congress pursues tax reform, a variety of proposals have arisen that threaten student access to education and the university’s ability to support the work of its faculty and students. The current House and Senate bills differ on some of these key provisions, and there will be many more changes as the legislation moves forward. The university is carefully monitoring these developments, working closely with our Congressional delegation, and participating in the advocacy efforts of the Association of American Universities and other peer organizations.

We recognize that tax reform will require difficult choices. Against that backdrop, we want to articulate two key principles that we hope will help guide deliberations:

  • Any provision that would make higher education more costly for students, effectively reducing access, will harm American families and undermine the mission of higher education and CMU. That includes proposals to tax graduate student tuition waivers, eliminate tax deductions for student loans, or reduce incentives for employers to contribute to tuition.

  • Any provision that erodes a university’s ability to support the work of its faculty and students will, in the long term, limit the contributions made by Carnegie Mellon and other universities. That includes proposals to eliminate the tax-exempt bonds that are critical to funding the maintenance and improvement of the university’s infrastructure, including research laboratories, and proposals to tax university endowments, which would hinder the benefits of philanthropy and shift that burden to families.

Higher education is not a special interest. The education we provide undergraduates and graduate students is one of the most powerful engines for their future success and ability to contribute to society. More broadly, the long-term health of government and industry depends on our graduates. And the breakthroughs born of our research hold the key to the nation’s economic future. We take that responsibility very seriously and will continue to advocate for policies that support this mission.

Sincerely,

Farnam Jahanian
Interim President