Bill Overview
Title: Nurse Corps Tax Parity Act of 2022
Description: This bill excludes from gross income, for income tax purposes, amounts received by members of the Nurse Corps as scholarships or loan forgiveness.
Sponsors: Sen. Merkley, Jeff [D-OR]
Target Audience
Population: Nurses and nursing students participating in programs similar to the Nurse Corps worldwide
Estimated Size: 5000
- The Nurse Corps provides scholarships and loan repayment assistance to nursing students and registered nurses, generally aimed at increasing access to healthcare in underserved areas.
- The Nurse Corps is a program under the U.S. Health Resources and Services Administration (HRSA) which directly impacts nurses in the United States.
- Globally, the concept of excluding scholarship or loan forgiveness from income tax might not be common, as tax laws vary significantly by country.
- The primary impact of this bill is on individuals who are currently benefiting from or considering utilising Nurse Corps programs, which are based in the United States.
Reasoning
- The Nurse Corps Tax Parity Act would exempt scholarships or loan forgiveness received by Nurse Corps participants from being taxed as income, effectively increasing their net financial benefit.
- The policy primarily targets nurses who are already receiving financial assistance through scholarships or loan forgiveness, thus representing a small but crucial subset of the nursing profession.
- Considering the policy's budget, the scope of impact is limited to a few thousand individuals (estimated around 5000), particularly those with significant student loans or scholarship amounts forming a large part of their income.
- Most impacted will be nurses in lower-income brackets for whom the tax exemption amount represents a significant financial relief.
- Given that the program aims to support healthcare delivery in underserved areas, the impact in terms of increased availability of healthcare could ripple beyond these individuals, indirectly benefiting patients in these communities.
Simulated Interviews
Registered Nurse (New York, NY)
Age: 32 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- The policy would definitely ease my financial burden. Most of my salary goes towards repaying loans, and being able to skip the tax on the forgiveness would allow me to save or invest in furthering my skills.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 6 |
| Year 2 | 8 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 6 | 5 |
Nursing School Faculty (Dallas, TX)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- I believe this policy will provide a much-needed financial cushion and might encourage more students to consider nursing and serving in areas that need us the most.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Nursing Student (Chicago, IL)
Age: 28 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 2/20
Statement of Opinion:
- Avoiding tax on the scholarship means I'll have more money to devote to living and learning expenses, allowing me to focus more on my studies without financial stress.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Public Health Nurse (San Francisco, CA)
Age: 35 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This tax exemption is a fair recognition of our contributions to society, particularly for those of us working in underfunded sectors. It acknowledges our financial struggles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Emergency Room Nurse (Miami, FL)
Age: 29 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 2/20
Statement of Opinion:
- If enacted, this type of policy would incentivize me and my peers to take advantage of educational opportunities and work in the areas that need us.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Pediatric Nurse (Raleigh, NC)
Age: 40 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- For many nurses transitioning through mid-career changes, this policy could provide additional financial security which is quite critical.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
Nursing Student (Seattle, WA)
Age: 23 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- Knowing that the scholarship amount isn't taxed is one less thing for me to worry about, easing my financial anxiety substantially.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 8 |
| Year 2 | 9 | 8 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Registered Nurse (Phoenix, AZ)
Age: 41 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- It feels like a reward for service in difficult areas, although more structural support is needed.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Community Health Nurse (Omaha, NE)
Age: 50 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 6/20
Statement of Opinion:
- Tax relief is a good step, but ongoing education and logistics support would ensure sustained benefits.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 5 |
Nursing Educator (Los Angeles, CA)
Age: 38 | Gender: other
Wellbeing Before Policy: 7
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- This reduction of financial burdens can be a great tool to recruit more nurses into underserved regions, especially for those worried about taking on debt.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $6500000 (Low: $5000000, High: $8000000)
Year 2: $6600000 (Low: $5100000, High: $8100000)
Year 3: $6700000 (Low: $5200000, High: $8200000)
Year 5: $6800000 (Low: $5300000, High: $8300000)
Year 10: $7000000 (Low: $5500000, High: $8500000)
Year 100: $8000000 (Low: $6500000, High: $9500000)
Key Considerations
- The policy primarily benefits a niche group of taxpayers—those who are part of the Nurse Corps program—by reducing their taxable income.
- It indirectly supports healthcare access in underserved areas by financially enabling more nurses to participate in the Nurse Corps programs.
- The relatively small population affected limits the overall budgetary impact on tax revenues.
- The long-term cost implications could vary if the policy encourages more applications or expansion of the Nurse Corps.