Scott Brunenavs earned spending money last semester by working at the University ice skating rink as a part of the College Work-Study program.
But Brunenavs (freshman-business administration) may be in for a surprise next semester if the federal legislature requires College Work-Study students to pay Social Security tax on their income.
The plan has not been formalized into legislative action but is being considered by the Social Security Subcommittee in the U.S. House of Representatives this week, said Marty Guthrie, director of governmental affairs for the National Association of Financial Aid Administrators.
"It's not a House proposal," she said. "It's a proposal the Bush administration put forward in the budget for (fiscal year) 1990."
The proposal would require state and local employees who are not participating in any other public employee retirement system to pay Social Security taxes, Guthrie said.
All public institutions and employees of those institutions would be affected.
"This type of proposal has been rejected before -- in 1987," Guthrie said. "Hopefully, it won't get support."
College Work-Study has not always been considered taxable income. Work-study income has been exempt from Social Security taxation since 1939.
If the plan is approved and survives the evolution into law, University students would receive a 7.65 percent reduction in take-home pay, said Robert Evans, assistant vice president for student financial aid.
This reduction would mean a student receiving a $1200 award would pay $91.80 of that total to the federal government.
During the 1988-89 academic year, University students earned more than $3.8 million, Evans said. A reduction of 7.65 percent translates into a loss of $294,227 in income to student employees.
"This would take money out of the pockets of students," Guthrie said.
Brunenavs said he is against student employees paying Social Security taxes because the program aims to help students pay for school.
"The federal government isn't giving me any money to pay for school," he added. "With Bush's platform of no new taxes, it just seems kind of pointless."
Not all students share Brunenavs opinion. Many students consider work-study a job like any other job which should be subject to the same taxes as other income.
Jeff Simons (freshman-nuclear engineering) said although work-study students earn money to pay for school, that income should be subject to the same taxes as other income.
"If I work at Burger King to earn money for school, why should I pay taxes on my money when someone who earns college work-study doesn't?" Simons said.
Jackie Henicle (sophomore-communications) agreed.
"Yes, I think they should (pay taxes) considering that when we get a little older -- like in our twenties or thirties -- we're going to have to pay for the baby-boomers when they retire," she said. "A job is a job."



