The “employees” might be shocked when they get their W2s.
For many, a scholarship means the difference of the college experience or not.
Many will have a hard time paying the taxes and would have to forgo college to pay off their debt to IRS.
In addition, for many this would translate into 'family income' and daddy dear might just be popped into a very high tax bracket or lose his Obamacare subsidy or his food stamps or , you name it.!