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House Republicans released a tax reform plan Thursday that would eliminate a tax break for Americans with student debt.The student loan interest tax deduction saves people as much as 5 a year, though most see a smaller benefit.The sweeping legislation was described by House Speaker Paul Ryan as a series of tax cuts aimed at helping most Americans. But it eliminates or limits some tax deductions and exemptions to fund those cuts.The student loan interest tax deduction is just one on the chopping block. The bill still needs to be approved by both the House and Senate, and signed by President Trump, who has said it will be done "before Christmas."Here's how it currently works: Those eligible can claim up to ,500 of what they paid toward the interest on their student loans, but not the principal.It's an "above the line" deduction that can be claimed without itemizing. But it's only available to borrowers with a modified adjusted gross income of less than ,000 (0,000 for married couples filing jointly.) The benefit is gradually reduced once you earn at least ,000 (or 0,000 for couples).About 12 million people claimed the student loan interest deduction in 2015, according to the IRS. More than 40 million Americans have student debt.The student loan interest deduction cost the federal government billion in foregone revenue during 2016, according to a report from The Pew Charitable Trusts.The cost has more than doubled since 2007 as student loan balances grew, even though the maximum deduction (,500) hasn't changed since 2001, the report said.Still, it costs less than the American Opportunity Tax Credit. That allows families who are paying for college out-of-pocket to claim up to ,500 per student. The benefit, which cost nearly billion in 2016, would be preserved under the House Republican plan.Even if the federal student loan interest deduction is repealed by Congress, you may still qualify for a state deduction. Thirty-seven states and D.C. offer a similar benefit, according to The Pew Charitable Trusts.The House bill also proposes nearly doubling the standard deduction. It would raise it for singles to ,000 and for married couples filing jointly to ,000. 2279
In another blow to its recovery efforts, an island-wide power outage left most of Puerto Rico in the dark, with only a fraction of residents regaining electricity by Wednesday night.The latest blackout prompted Gov. Ricardo Rossello to call on the Puerto Rico Electric Power Authority (PREPA) to cancel its contract with the subcontractor that caused the massive outage."I have suggested to the PREPA Board of Directors that they cancel the contract with the Cobra subcontractor who is directly responsible for this power outage," he said in a statement Wednesday.An excavator operated by D. Grimm, a subcontractor for Cobra Acquisitions, apparently caused the blackout, according to the authority. Workers had been removing a fallen tower when the machine got too close to an energized line and an electrical ground fault caused the outage, according to Mammoth Energy, Cobra's parent company.The same company was responsible for an outage that affected 870,000 customers after a tree fell on a power line last week, PREPA said."This is the second power failure that has affected the people of Puerto Rico in less than a week," Rossello said. "This incident denotes the need to transform PREPA into a cutting-edge, modern and robust corporation. This is another example of why Puerto Rico's energy infrastructure needs to incorporate new forms of power."As of 8 p.m. Wednesday, only 334,000 customers in the US commonwealth had electricity again, according to a tweet from PREPA. It also said via Twitter that it's working to restore service through the island. 1570

House Speaker Nancy Pelosi on Monday released a new proposal that includes .2 trillion in spending, and sends direct payment of ,200 to most Americans.The proposal still costs more than the White House has said it would like, but is down from the .4 trillion stimulus plan House Democrats passed back in May.In addition to another set of ,200 direct payments to millions of Americans, House Democrats propose using 5 million for education, more funding for the struggling airline industry, and 6 million for local governments. The set of proposals would also include a 0 per week unemployment supplement, which expired at the end of July.“This .2 trillion Heroes Act provides the absolutely needed resources to protect lives, livelihoods and the life of our democracy over the coming months,” Pelosi said in a letter to House Democrats. “It includes new funding needed to avert catastrophe for schools, small businesses, restaurants, performance spaces, airline workers and others.”Last week, Treasury Secretary Steve Mnuchin confirmed that he and Pelosi agreed to relaunch negotiations on a stimulus plan.Earlier this month, Senate Republicans attempted to pass a “slimmed down” stimulus bill with a cost of 0 billion. But that proposal failed to move out of the Senate.Editor's note: An earlier version of this story incorrectly said Democrats are proposing 5 for education, when it should have said 5 million. 1449
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Icelandair Group has announced plans to buy rival budget airline WOW air for about million, the company announced Monday.WOW air was previously a competitor to Icelandair as it boasted flights as low as , making it an attractive option for budget travelers.The two flight carriers will continue to operate under their different brand names. 376
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