Earning potential goes hand in hand with education. Dot-com millionaires aside, the surest ticket to prosperity in the either the Old or New Economy starts with a good education. From a high school diploma to technical training and a college degree, a person’s life-time earning power rises exponentially with each layer of higher learning.
The U.S. Census Bureau found in 1999 that the annual average income for a person who graduated from high school was $24,572, while the average income for those with a bachelor's degree was $45,678. Other studies show that over a lifetime, the gap in earning potential between a high school diploma and a bachelor’s degree or higher exceeds $1 million.
One way to purge gender, racial or ethnic barriers from the economic ladder of opportunity is by opening up the doors to higher education. Job training, technical literacy, advanced degrees and professional experience add up to a bigger bottom line for American workers.
Likewise, employers recognize that a skilled workforce adds value to their bottom line. Many offer tuition benefits to cover partial or full time school fees for their employees. The federal tax code has encouraged employers to offer this tax-free benefit to workers as an incentive to build a skilled labor pool. It’s a good way to help employers invest in and assist the workforce. Consider that almost half the jobs in the marketplace today didn’t exist 10 years ago. That means the sky is the limit for job growth and career opportunity. In this dynamic digital, high-tech workplace, job training and re-training is critical to employers and employees alike.
As a member of the U.S. Senate, I work to advance public policy that affords people from all walks of life an opportunity to live the American Dream. The surest way to curb the achievement gap between the 'haves' and the 'have-nots' is by making higher education and vocational training affordable and accessible to more Americans. The tax code shouldn’t get in the way of anybody learning what they need to know to get ahead.
That’s why I am pushing to make permanent employer-sponsored tax-free tuition benefits and student loan interest deductions. Current law allows borrowers to deduct the interest on their student loans for 60 payments. As a senior member of the tax-writing Senate Finance Committee, I secured the restoration of this deduction in 1997. Now as chairman of the committee, I am working to make the deduction permanent to lighten the debt burden for all students. This should help encourage students to get the highest level of education they can.
The federal government can lend a helping hand to Americans seeking to get ahead by making it easier and more affordable for individuals to invest in themselves. Making these higher education tax incentives a permanent part of the federal tax code will unleash more opportunities for those seeking to get and stay ahead. A highly-skilled and educated workforce also boosts productivity levels and helps to keep the economy chugging full steam ahead. Whether it’s advanced training in the trades, technology, financial or business sectors, higher education helps to power the economy and put the earning power of American workers on the fast-track to prosperity.