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ERIC Number: ED518387
Record Type: Non-Journal
Publication Date: 2011-Apr
Pages: 15
Abstractor: ERIC
Reference Count: 10
How Public Education Benefits from the Federal Income Tax Deduction for State and Local Taxes and Other Special Tax Provisions. A Background Paper from the Center on Education Policy
Riddle, Wayne C.
Center on Education Policy
This background paper is intended to serve as a companion to the Center on Education Policy report, "Get the Federal Government Out of Education? That Wasn't the Founding Fathers' Vision." That report discusses the historical foundations and current purposes of the federal role in education. This paper goes into more detail about an issue mentioned briefly in the other report--the financial benefits that education incurs from special federal tax provisions for "individual" taxpayers, particularly the deduction for state and local taxes. Although federal "corporate" tax provisions also affect education, they are beyond the scope of this paper. This paper presents a summary of key findings. Following the key findings is a broad overview of all the special tax provisions for individuals that benefit any level of education and the estimated amount of benefits from each provision. The subsequent sections, which comprise the bulk of the paper, analyze the impact of state and local tax deductibility on public K-12 education. Key findings include: (1) Special tax provisions indirectly subsidize all levels of education; (2) Public K-12 education receives benefits worth billions of dollars through the deductibility of state and local taxes; (3) The federal deduction for state and local taxes has a greater impact in some states than in others; and (4) The federal deduction for state and local taxes appears to maximize the ability of states and localities to raise revenues for public K-12 education. (Contains 3 tables and 3 footnotes.) [For the companion report, "Get the Federal Government out of Education? That Wasn't the Founding Fathers' Vision," see ED518386.]
Center on Education Policy. 1001 Connecticut Avenue NW Suite 522, Washington, DC 20036. Tel: 202-822-8065; Fax: 202-822-6008; e-mail:; Web site:
Publication Type: Reports - Evaluative
Education Level: Elementary Secondary Education
Audience: N/A
Language: English
Sponsor: George Gund Foundation; Phi Delta Kappa International
Authoring Institution: Center on Education Policy