Alyssa Vande Leest IS Story Final Draft TA: Emily Vraga The American Opportunity Tax Credit: the UW campus waits and wonders When University of WisconsinMadison sophomore Molly Zwettler cast her vote in the 2008 presidential election, she had just one thing on her mind. “I didn’t know much about either of the candidates,” Zwettler says. “But I saw Obama speak at the Kohl Center and was really struck by his plan to give college students a $4000 tax credit for school expenses in return for 100 hours community service. I immediately saw how this plan could benefit me personally and the country as a whole, and I can say it’s the main reason I voted for Obama.” But almost 100 days into Barack Obama’s presidency, little attention has been given to this particular campaign promise, called The American Opportunity Tax Credit by the Obama administration. Legislation to address parts of the administration’s service agenda made its way through the House and Senate in late March, but none of that legislation dealt with tuition assistance for student volunteers. This has left people like Zwettler to wonder if they’ll ever see the tax credit they were once so excited about. As they wait to see if it will become a reality, many on the UW campus have begun to pose questions about the tax credit, and two questions come up more often than others. First, many wonder what form the American Opportunity Tax Credit would take on the UW campus. And second, many question whether the tax credit would be good for the university. These are
questions with few concrete answers. “The issue right now is there’s just not enough specific information out there and guidance about how this is going to be,” says Randy Wallar, associate director for the Morgridge Center for Public Service on the UW campus. Wallar says he would like more information about how service requirements will be handed out and rewards determined. According to Howard Schweber, a political science professor at the UW, a service requirement could be imposed in the same fashion as a military draft. He says it is more likely, however, that only students who attend public universities or receive student loans would be required to participate in community service. Wallar disagrees, and says he doesn’t foresee a future in which service is required of all students, even at public institutions. “[Community Service] would never be a requirement on this campus,” Wallar says. “There would be additional opportunities and incentives for our students to get involved, which is great, but what that’s gonna look like, no one knows.” Though the specifics of the American Opportunity Tax Credit are still uncertain, debate about its merit has already begun. Schweber explains that objections to the tax credit fall into two categories. “Some people, primarily those inclined to oppose the Obama administration politically in the first place, have been making shrill accusations that the incentive program constitutes
something like involuntary servitude on the grounds that very few people will be able to afford to turn it down,” Schweber says. “More serious objections have been raised to the problems likely to arise at the implementation stage.” Schweber explains that some worry it will be difficult to determine what would qualify as service, and others fear that a service requirement may keep students from starting businesses, joining student government or participating in other timeconsuming extracurricular activities. This final concern is what makes UW Junior Mike Conrardy, the Morgridge Center’s volunteer of the month in March, apprehensive of the American Opportunity Tax Credit. “I do a lot of work with a student organization on campus called the Biomedical Engineering Society,” Conrardy, says. “To me, my role in BMES is definitely serviceoriented but I’m not sure that the tax credit would apply to it, and that would be really unfortunate.” Wallar agrees that this could be a problem, but says his main concern is that the tax credit could result in unnecessary spending unless it was made available only to students with demonstrated financial need. He says would be “fiscally unsound” make a tax credit available to every student at the UW, as many students come from highincome families capable of paying tuition without assistance. Still, for every argument against the American Opportunity Tax Credit, there is one for it. For Wallar, the benefits of the tax credit greatly outweigh its risks. “It’s a great entry for lessprivileged students to get a leg up and become an engaged citizen,” Wallar says. “I think generally speaking it’s a great idea.”
Zwettler, who takes on full financial responsibility for her college education, agrees. “Even though I’d like to volunteer, working becomes a priority when I have to pay the bills,” she says. “If there was some incentive for volunteering, it would make it possible for me to give something back to the community and still be able to pay for school.” Zwettler isn’t the only one who is attracted to the tax credit by its promise of financial rewards, but according to Schweber, the program’s biggest rewards are likely to be social rather than financial. “For those that have the experience of service during college,” Schweber says, “a significant number will continue such work later in life.” When the American Opportunity Tax Credit begins to take form, debate over its value is likely to increase. But in the end, whether a success or a failure, the tax credit will make history, Schweber says. “This is an enormous experiment in a kind of social engineering,” he says. “The shape of the college experience will be profoundly changed if this program goes forward.”