WASHINGTON, D.C. - Select Revenue Measures Chairman Richard Neal (D-MA), issued the following opening statement at a hearing on tax incentives for postsecondary education:
"I call this hearing to order. Please take your seats.
"I want to welcome everyone to this hearing on higher education tax incentives by the Select Revenue Measures Subcommittee.
"Part of the American dream has always been the hope that our kids will do better than us and a college education is one way to do that. As the parent of four kids, I can tell you that now matter how much you prepare for college, you will need help.
"I thought I had it tough when I went to college. As a first-generation college student from my family, I had to work in a bakery all four years to pay tuition and fees. As a parent, though, I found myself with three of my four kids in college at the same time.
"While I felt blessed that they’d been admitted to excellent schools - Springfield College, Trinity College, and Boston College - the combined private school tuition was simply overwhelming, even for a Member of Congress with a decent salary. During the peak tuition year of $90,000, I actually qualified for financial aid.
"So I did what many American families do: I took out a second mortgage on my house, I got a second job teaching at UMass, and I borrowed from my retirement account.
Part of the bargain was that each of my kids committed to pay for one year on their own. All of us will be paying off this debt for years to come.
"But I cannot imagine any other decision for my kids - it was an investment in our future. And, imagine my relief when my last child got a full four-year scholarship to LaSalle!
"Franklin Roosevelt once said, “School is the last expenditure upon which America should be willing to economize." I understand that sentiment. Congress has responded over the years by creating a variety of tax benefits for families with higher education costs. We may have over-responded, though, with conflicting and overlapping incentives.
"GAO will tell us today that a quarter of taxpayers with education expenses either don’t claim the right benefits or miss these tax incentives altogether, and half of those tax returns were done by professional preparers.
"We will also hear that these incentives may help keep down the cost for those already attending college, but may not help those for whom college is out of reach. We have assembled a diverse set of witnesses who will explain these issues and offer suggestions about how to improve these incentives."
