Education Week: Federal Tax Credits Poised to Make a Big Education Impact
media mentionGiven DeVos’ repeated states-rights pronouncements, it also seems likely that individual states will have substantial ability to shape how tax credits scholarships are distributed in their jurisdictions to support their vision of public education.
Each state will have to protect itself, and its children, against waste, fraud and abuse that are already apparent in state tax credit programs.
Some existing state programs are little more than tax avoidance schemes for the wealthy. Because state tax credits also generate federal deductions, it’s possible to make money by buying tax credit scholarships. This table from the Institute on Taxation and Economic Policy illustrates how it’s possible to receive up to a 33% profit on a scholarship “donation.” Read more