ERIC Number: ED209732
Record Type: Non-Journal
Publication Date: 1981
Reference Count: N/A
The Economics of Education Tax Credits. Critical Issues.
West, E. G.
Based on the view that tuition tax credits will benefit all taxpayers, this report examines the history and economics of educational financing to furnish a background for an explanation of current proposals to provide tuition tax credits. The author begins with five theoretical economic models of school finance designed to explain the logic of tuition tax credits. The report then looks at several historical models of school finance including the New York public school system and the economic bases for free and for compulsory schooling. The rationales for current proposals to establish tax credits are then examined and some criticisms of tuition tax credits are refuted. The report then makes a case for a potential gain for taxpayers from education tax credits based on the contention that they will generate competition throughout the school system and bring down the cost of education. Early origins and recent federal proposals for tax credits are then examined, including Tom Paine's education tax credit system, U.S. federal tax credit and tax deduction schemes until 1977, the Packwood-Moynihan Proposal, and the 1979 tuition tax credit bill. The report concludes with descriptions of education tax credit proposals in California and Washington, D.C., and a comparison of tax credits and vouchers. (Author/JM)
Descriptors: Economic Factors, Educational Finance, Elementary Secondary Education, Models, Private Schools, Public Schools, School Support, Tax Credits, Tuition
Heritage Foundation, 513 C Street, N.E., Washington, DC 20002 ($3.00).
Publication Type: Opinion Papers
Education Level: N/A
Authoring Institution: Heritage Foundation, Washington, DC.
Identifiers - Location: California; District of Columbia