May 24, 2006

Congressman Calls for Tax Incentives to Promote Private Financial Aid

Rep. Ric Keller, the new chairman of the U.S. House of Representatives subcommittee that oversees higher education issues, used his first hearing to promote legislation that would allow businesses to reimburse their employees tax-free for up to $2,500 of their children's college education. Individual employees would receive the greatest benefits from the legislation, but business would receive some tax relief for not having to pay payroll taxes on exempted money. The bill falls under the jurisdiction of the House Committee on Ways and Means. To date, no action has been taken on it.

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