ERIC Number: ED463568
Record Type: RIE
Publication Date: 2001-Sep
Tuition Tax Credits: What Do We Know So Far? Occasional Paper.
Belfield, Clive R.
This paper reviews the economics of tuition tax credits (TTCs). TTCs can be described in terms of "finance" and "regulation." They allow individuals to spend money on education services and to offset at least a portion of that expenditure against their tax liability. There are few economic studies of tax credits, but they stress two questions: What is the loss/gain in revenues to the state? and Who benefits? There is some evidence on both these questions, and the evidence in the main points to the following answers: (1) state revenues fall; and (2) those who already have children in private schools are the largest group of beneficiaries. Discussion of the future for the specific federal TTC plan is highly speculative with political, economic, fiscal, and possible legal barriers that may affect future adoption of TTCs. The paper also looks at how to evaluate TTCs using a comprehensive framework. An appendix describes TTC schemes across six states. (Contains 14 references.) (RT)
Descriptors: Cost Effectiveness, Educational Economics, Elementary Secondary Education, Private Schools, Tax Credits, Tuition
For full text: http://www.ncspe.org/.
Publication Type: Reports - Descriptive
Education Level: N/A
Authoring Institution: Columbia Univ., New York, NY. National Center for the Study of Privatization in Education.