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I hate that term... "deserving American students", but yes for public schools I think it's a bit strange for UG purposes and maybe even post-bac purposes -- when intels are given financial aid.
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<p>I too hate the term 'deserving American students'. What, just because you're an American makes you automatically 'deserving'? Why? So in other words, the system should just reward winners of the 'genetic lottery'? Let's face it. Most Americans didn't really do anything to 'deserve' their status as Americans. They just had the luck to be born here as opposed to some poor country. It's not his fault that a guy gets born in Congo or Myanmar. </p>
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At least OOS students pay taxes to whichever state they live in, and that money is going somewhere even if it's not contributed to the state they attend school in, and obviously you can see where I'm going with this.
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<p>Well, let me tell you this. Practically all foreign-born PhD students get significant 'aid' in the sense that almost all of them not only don't pay any tuition, they also get paid a stipend, through a fellowship or TA/RA-ship. In fact, this is a general rule for all PhD students regardless of where they come from. In fact, I know some PhD students from poor countries whose stipends represent far more money than they could ever make back in their home countries, and in fact, they remit much of their stipends back home to greatly improve the lives of their families. A few thousand dollars of remittances may not seem like much to us, but it is a *small fortune * in some countries. </p>
<p>Let me also tell you of one instance that I do find quite ridiculous. US citizens who are PhD students have to pay US taxes on their stipends. But citizens of certain foreign countries that have a special tax treaty with the US do not have to pay US taxes on their stipends from those same PhD programs. Now, to be sure, those foreigners are theoretically supposed to be paying taxes to their own government. But the fact is, the vast majority of countries do not actually charge income taxes on money that you make outside of the country. The net effect is that those foreign students * don't have to pay any taxes at all*. In other words, those foreign students actually end up with more *money (after-tax) than do the US students *in the same PhD program. </p>
<p>Here is a list of nations that have that tax treaty with the US. Hence, if you come from China and join a PhD program in the US, you will effectively be living better than will an American citizen in the same PhD program. Unbelievable, isn't it? </p>
<p><a href="https://sfsportal.harvard.edu/admin/sro/tax_foreign.shtml%5B/url%5D">https://sfsportal.harvard.edu/admin/sro/tax_foreign.shtml</a></p>
<p>Now, don't get me wrong. I am not advocating that those foreign students from those countries have to pay taxes on their stipends. What I am really advocating is that US students should also not have to pay taxes on their stipends. In other words, why can't the US basically have a "tax treaty with itself" (the way that countries like China or Bangladesh have) to exempt its own PhD students from taxes? If a Chinese PhD student doesn't have to pay taxes, why should an American PhD student?</p>
<p>This is an issue that actually comes from real life. I know 2 people in the same PhD program at Harvard. One is an American who has a wife who doesn't work and also has 2 kids. The other is a girl from Portugal who is single and has no kids. They both get the same stipend. Yet it is the American guy with the family to support who nevertheless has to pay US taxes. The single Portuguese girl pays nothing at all. She doesn't pay US taxes because of the tax treaty. She doesn't pay Portuguese taxes either because Portugal doesn't care about what you do outside of the country. Yet who really needs the money, a single girl or a guy with a family? They're both friends of mine, so I'm happy that she doesn't have to pay taxes, but if she doesn't have to pay taxes, then neither should he. I happen to think this is just a screw-up of US government policy.</p>