Official: Proposal is insult
Foreign students may pay taxes
By Doug Isakson
Staff Reporter
Fewer foreign students would come
to the University of Nebraska-Lin
coln if a proposal to tax their scholar
ship money is approved, an official
said.
Peter Levitov, director of Interna
tional Educational Services, said that
if the federal tax is passed, it would be
an insult to foreign countries and an
economic hardship to foreign students,
discouraging those who have schol
arships from their own countries from
studying at American universities.
The current law taxes only U.S.
sources, but if the proposal passes,
funding from foreign sources would
be taxed instead.
The cost of college in the United
States for foreign students is already
high compared to other countries,
Levitov said. The tax would be one
more barrier to foreign students, he
said.
The loss to UNL would be “ter
rible,” Levitov said, especially since
Nebraska ranks low compared to other
states in its percentage of foreign
students.
“It’s also quite offensive,” Levi
tov said. “Already some people are
upset about this. It’s almost like inter
my
tering with the efforts of a foreign
country to educate its own citizens.
“It’s like taxing the parent of a
student from another country,” he
added. “If a parent gives money to
them, do you tax that?”
Bert Harding, a Washington attor
ney who representsa number of grant
making organizations, said that there
would be complaints regardless of
what source was taxed.
The current law is beneficial to
American universities and some for
eign students because foreign students
who receive foreign funding can at
tend U.S. universities without being
taxed, Harding said.
But it hurts U.S. foundations who
sponsor foreign students who work
and study in countries outside Ihc
United States because the tax cuts
into the amount of the scholarship.
“You can imagine how stupid this
seems to be participating foreigners,”
Harding said. “Germans get a grant
(from a U.S. sponsor) to study in
Spain, and suddenly the U.S. is ask
ing for this lax. As we speak, that’s
the state of the law.”
According to a report in the Oct.
10 issue of The Chronicle of Higher
Education, several U.S. grant-mak
ing foundations, including the Ford,
John Simon Geggenheim Memorial.
Regents
Continued from Page 1
very upset,” Powell said.
Dick Youngscap, a managing part
ner at Firethom, said members have
the choice whether to sign the form
designating guest fees to the Wilson
campaign.
“This was not in any circumstance
a coercion and our intent was not to
siphon off his (Powell’s) valuable
supporters,” Youngscap said.
Youngscap said Powell seems to
be “grasping at straws,” and the issue
docs not have anything to do with the
regents race.
Wilson said a group of Firethorn
members were invited to have guests
play at the private club, and guest fees
can be given to the campaign.
“I guess, first of all, it seems Dr.
Powell has a hard time getting his
facts straight,” Wilson said.
Firethorn is a private club and the
guests must fill out a forrp if they
want their fees to go toward the
campaign, Wilson said.
‘‘It’s a totally free choice,” he said.
“That’s what political campaigns and
fund raising arc all about.”
Wilson said artists have donated
their works to an auction to support
Powell. The profits from the auction
went to Powell’s campaign.
“I have no problem with that,”
Wilson said. Fund raising in that way
is no different than the Firethorn fund
raising campaign, he said.
“It’s a perfectly legitimate way'to
raise funds,” he said. “I think he’s
struggling for some issue.”
Search
Continued from Page 1
standing candidate comes along,”
Acklie said.
If such a candidate docs apply, the
committee probably would take the
time to interview and check the refer
ences of the new applicant, Acklie
said.
“The search committee is moving
forward,” Blank said, “And the time
will come soon when, if another name
comes forward, it will not be feasible
to consider the person. But I don’t
anticipate another name coming for
ward.”
When asked if any of the seven
candidates have indicated the pro
posed 2 percent lid would have an ef
fect on their decision to take the posi
tion, Acklie said he did not know of
any of the seven who have taken a
position on the issue.
A constitutional amendment for a
2-percent limit on state and local
government spending will be decided
in the Nov. 6 election.
“If there was, we would probably
hold off,” Acklie said. “But so far, no
one has said they would not take the
position by reason of (the outcome
of) the election.”
The search committee tentatively
has scheduled its next meeting for
Nov. 9, providing the results of the
reference checks arc available.
Blank indicated that the commit
tee would take its final vole on the
names to be forwarded to the board in
an open meeting, rather than in a
closed session.
“Of course, we’re going to have to
have pretty well reached a consen
sus,” he said, even though no vote
will be taken in closed session.
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W.K. Kellogg, John D. and Katherine
T. MacArthur and Rockefeller foun
dations, arc lobbying for the new tax.
Peter Barnes, deputy international
tax counsel at the U.S. Treasury, re
fused to comment Friday on whether
the the change was likely to take
place.
Levitov said that by reducing the
number of foreign students studying
at UNL, the tax would lower the quality
of education at UNL and hurt the
state’s economy. *
Having foreign students on cam
pus is especially important in a state
such as Nebraska, he said, because its
location causes it to be insulated from
foreign cultures.
“The university is committed to
having an international student pres
ence to provide Nebraska students
with opportunities to learn by experi
ence from students from other coun
tries,” Levitov said.
“All of us in this state arc affected
by world events. What happens in the
world will affect us economically and
directly. To lose this education will
disadvantage the state as a whole,” he
said.
Fewer foreign students also would
mean an economic loss because they
no longer would be bringing money
into the stale, he said. Each foreign
student spends about $10,000 at the
university, not counting the money
spent on cars, stereos, and other items.
“That’s not the reason we want
them here,” he said, “But it’s just
another aspect—part of theexchangc
process.”
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