Waive state income tax for college graduates

Re-reading this idea a year later, I like the uniqueness of it, I like the novel reward incentive it poses, I like the little help-out it gives to graduates in their first year on the job, and I like that it would probably help keep more of our college graduates in Idaho.

By waiving state income tax just for that first year of when the degree is received, it also would not be that expensive to our state budget.

What do you think?

I’d recommend two changes.

I’d match the years in post high school training 1:1, for f/t students. If one was in training 4 years, then 4 years of no income tax. If one trained for 13 years, then 13 years without income tax.

We are, after all, competing with WY and MT for the same professionals. And, per the recent census info, Idaho is growing much faster (go I.F.! 44th fastest growing city in U.S.).

Consequently, I believe we have to invest in people and their training to reap the benefits of their education and skill.

2. My second change would be to pro-rate a tax benefit for p/t students. I’m not sure how, but if someone worked full-time as s/he got his/her degree to become a teacher, I believe that person deserves tax breaks too.

I’d be interested in your ideas. The problem I can already envision is for those who considered themselves students as they took one college class/year. Most who are attending college p/t manage at least 3 classes/year.

There would have to be a way to filter the students who would be eligible for this compensation. What do you think would work?

Anonymous has a good point. Most college students only work part time, or if they do work full time, it is on the lower end of the wage spectrum. This idea would provide an incentive for a few, but I think it would be pretty unsubstantial as a whole.

However, I also think income tax needs to be done away with all together, but that is another topic for another day.

I agree with Davin regarding income tax needing to be abolished - if anything, just because it’s double-taxation. We’re taxed on our labor, then taxed if and when we decide to spend our money earned by that labor. It seems ridiculous to me.

I agree there is little benefit for the first year after graduation, for those only receiving one year of now taxes.

I’ll still vote for a year of tax free for a each year of college, and professional school.

Maybe another idea would be to NOT tax full-time or part-time college students who can prove they are working for a degree, while in college, and then 4 years tax free.

Maybe if Idaho invested earlier in students during college, the graduate could enter the Idaho labor market with a better financial situation. At least the potential employee would probably have a more positive attitude.

Somehow, the state must show that the students do matter! From my POV, money does speal. I realize that may offend some, but in the business world if someone wants me to prioritize their project, throw in either bonus money, a new piece of equipment etc. as an “incentive.”

As I recently told a corporation who didn’t pay mine on time, it’s not just about the money (although that is a huge issue for a small business planning on the previously agreed-upon pay schedule to meet our payroll and expenses). Failure to pay on time speaks volumes of how the other company views other businesses.

I see Idaho’s failure to invest in kids and college students as a huge error and sending the wrong message. Or, maybe it is the message the state wants to send, and it is me who doesn’t like what that message says.

I actually read a study several months ago where they compared saving and investing the same amount of money in college studies or in the markets. It pitted the income potential of investment markets against the income potential of a university degree.

Guess which one earned more money in the long run? The market investment strategy won.

There were two flaws as I recall, one assuming the average income of higher degree holders, so some people would earn more or less than average, and that all depends on where you live. In Idaho, unfortunately, one will likely earn less than average even with a degree.

The other flaw was assuming the same amount of money that would be paid to the university each semester would instead be invested. Many people now pay for college with huge student loans, and would not easily come by that money just by working.

However, the concept was clear to me: focusing energy on saving and investing money will generally earn more than a degree.

It’s kind of depressing, especially here in Idaho where we have very little financial education in our elementary and high schools, and where a degree does not earn you as much as in other states.

ummmm…..can we say “spammer”?
Get on the ball new guy…

Spam posts removed. (What some people do for attention now a days.)

We’ll continue to watch for spam postings.

Oh, Yay! I get to be spam! (Since the stuff was deleted the new comments are renumbered, and now 007 is #13…and I’m likely to be #17, so that means I’m in the range CR67 said was spam)!

hee hee. I know y’all thought my comments WERE spam all along, but now, you know!

I just feel like saying, “spam, spam, spam, spam, SPAM!”

Of course, I have to follow that with,

“I’m a Lumberjack and I’m okay…”

And nobody would dance with her….