Sunday, March 1, 2009

American Opportunity Tax Credit

President Barack Obama has proposed a bill (section 1004) called the American Opportunity Tax Credit to "make college more affordable by directly reducing the amount of money a person owes in taxes." This Bill will make Community College tuition almost free and will try to cut at least two thirds of a Public College debt. Obama is proposing a maximum of $4,000 for a tax credit and possibly rewarding this credit to families even if no taxes are owed. This tax credit should be "immediately refundable," which means that these fund will be available at the time of enrollment for school.

This Bill is basically replacing the Federal Hope Scholarship. This tax credit will start to be applied to expenses paid in 2009 and after. This credit will be applied to 100% of the first $2,000 of expenses paid and 25% of expenses paid on the next $2,000 (the maximum will total $2,500). Students are eligible for four years instead of the original two years and will also be able to be applied to books and course materials. For a single tax filer the adjusted gross income has been raised to $80,000 and $160,000 for joint tax filers.
I think that bill is very good idea. I think that individuals who are motivated enough to take on the challenge of attending a college or university should be rewarded. Many students do not get a chance to attend a college of their choice and some do not make it to college because they do not have sufficient funds to do so. Those who attend college will be making future decisions and helping our country in the next five to ten years. I think that the future of this country relies on educated and qualified individuals and that out country should help support them, since we will be the ones who have the power to help this country's future.

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