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If this goes through, there will be some huge adjustments for graduate students and the research universities that depend on them. With no phase in, this could really hurt current students who thought that they would be getting $15k a year to live on and now have almost nothing, if they have to pay tax on the $30k the university is "giving" them in tuition. If you are have way through a degree program what do you do? Even more student loans?

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Or they'll offer 2 "products" from this point forward. One only open to local students and half the price. One open to everyone but full price.

I'm sure accountants can figure this one out.

Many schools already do it with their tuition rates per credit hour: the cheapest rate for city residents, then in-state residents, then out of state students. Adding a fourth tier for foreign students sounds trivial.

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