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Four Things to Know about Tax Credit Scholarships for School Choice

Education Next – Kristin Blagg, Matthew M. Chingos, Tomas Monarrez and Alexandra Tilsley

“Tax credit scholarship programs are already used in 18 states to provide students with the opportunity to attend schools other than their nearest public school. These programs allow people and corporations to donate to a designated scholarship granting organization (SGO) and be reimbursed in the form of a tax credit. In Cruz and Byrne’s plan, states would designate the eligible SGOs, but the federal government would fund the tax credit reimbursement, up to $5 billion total.” (more)

DeVos Announces Support For Proposed School Choice Tax Credit

NPR – Clare Lombardo

“Education Secretary Betsy DeVos and Republican lawmakers have announced a proposed tax credit that would go toward donations to private school scholarships and other school choice initiatives. “A great education shouldn’t be determined by luck or by address or by family income,” DeVos said Thursday at a news conference. She appeared alongside Sen. Ted Cruz, R-Texas, and Rep. Bradley Byrne, R-Ala., who said they plan to introduce the tax credit in Congress.” (more)

New Florida Study Shows Students Using State’s Tax Credit Scholarship Program More Likely to Attend and Graduate College

The 74 Million – Beth Hawkins

“To the research on private school choice, add one more layer: The Urban Institute has released the results of a study that shows that students participating in Florida’s tax credit scholarship program are more likely to enroll in college than their traditional-school peers, and somewhat more likely to earn a bachelor’s degree.” (more)

Kids needs tax education

News Herald – Juliann Talkington

Juliann

Regardless of whether you believe taxes are crucial and helpful or unnecessary and unfair, it is important that your kids understand the concept of taxation, how tax money is collected and used, and what they can do to influence tax policy.

Here are a few kid friendly facts you can share with your children.

There are a lot of taxes in the U.S.
Individuals are taxed on property, purchases, income, wages, facilities use (tolls), and dying (death tax). Companies pay duties, tariffs, fees, registrations, and employment taxes. They pass these extra costs onto consumers as higher prices, which means individuals ultimately pay for business taxes.

U.S. taxpayers have little say on how tax money is spent.
Once the taxes are collected by a taxing agency, taxpayers have little control on how the money is allocated. As a result, it is critical that voters consider all tax referenda carefully. If a taxpayer does not like a tax he/she can circulate a petition to have the tax recalled, run for office, and/or work to get different politicians elected.

Taxes increase the power of the government.
Tax revenues give government entities control over large budgets, which can create problems with corruption as companies and individuals lobby to obtain projects bid by the government.

Taxes fund a wide variety of programs.
Taxes are used to pay for everything from roads and bridges to special projects like studying methane emission from dairy cows.

Private sector worker taxes pay for government jobs.
When someone works for a public school, a public college or university, the TSA, the military, a company who executes government contracts, an organization that receives government grants etc. his/her salary is paid by people working in the private sector. Even though government employees pay “taxes”, these “taxes” just reduce the cost of that worker, since the taxes go back into the pool of money used to pay government salaries. As a result, it is impossible for the government to operate without loans or tax contributions from private sector workers.

Tax marketing is often different from tax implementation.
Taxpayers are often more willing to approve taxes for education, so government agencies will sometimes market a tax as a way to improve schools without restricting the money to schooling.

Once your kids have an understanding of taxation they can make sound economic decisions for themselves and help their communities make wise choices about taxes and community services.

School Choice Boosts Test Scores

Education Next – Patrick J. Wolf

“Private school choice remains a controversial education reform. Choice programs, involving school vouchers, tax-credit scholarships, or Education Savings Accounts (ESAs), provide financial support to families who wish to access private schooling for their child…there are now 50 private school choice programs in 26 states plus the District of Columbia…But does it work?…The sum of the reliable evidence indicates that, on average, private school choice increases the reading scores of choice users by about 0.27 standard deviations and their math scores by 0.15 standard deviations. These are highly statistically significant, educationally meaningful achievement gains of several months of additional learning from school choice.”(more)

School Choice Rally in Florida Draws Over 10,000

Education News – Kristin Decarr

“Thousands of parents and children came together in Florida’s capital in an effort to persuade the largest teacher’s union in the state to drop a lawsuit against an education voucher program that benefits low-income families. Martin Luther King III led the rally, along with religious and community leaders, arguing that the Florida Tax Credit Scholarship offers opportunities to families who may not otherwise be able to have them, and urging the Florida Education Association to cease the lawsuit they have brought against the program, reports Jim Rosica for Florida Politics. The FEA, along with other critics of the program, believe the scholarships are taking money away from the public school system in Florida.”(more)