The average costs for an undergraduate student in 2010-2011 were $18,133 (U.S. Department of Education, National Center for Education Statistics. (2012). Digest of Education Statistics, 2011 (NCES 2012-001), Chapter 3 .) At present the tuition deduction for federal taxes is capped at $4,000. This pales in comparison to the actual cost of tuition.
Therefore, The Obama administration should increase the IRS allowed deduction amount to $10,000 to better reflect the actual cost of undergraduate education costs.