Tax Paying Hope and Lifetime Learning Credits for
Government assistance programs for education have been a staple of the American welfare state since World War I. Yet never before have radically new types of federal and state aid to education been devised than in just the first few years of the 21st century Reasons of documents editing.
Examples include the Hope Scholarship, Lifetime Learning Credit, and Education IRA. They are central to an agenda that has come to be known as “school choice.” School choice is generally characterized as allowing public money to follow students to schools of their own choosing. The idea is simple: just as parents can choose where they want their children educated, government should be able to choose where it wants its money spent.
Lifetime Learning Credit, and Education IRA
The Hope Scholarship, Lifetime Learning Credit, and Education IRA are all tax credit programs. They follow logically from the longstanding idea of deducting or “writing off” expenses when one pays taxes. Tax credits are thus an extension of tax deductions Reasons of documents editing . But because they are more lucrative, tax credits like the Hope and Lifetime Learning Credits have become a major vehicle for efforts to funnel public money into private schools.
General idea of tax credits was floated in 1989,
Ever since the general idea of tax credits was floated in 1989, school choice proponents sought ways to use them not merely to offset state income taxes but also federal taxes. The campaign gained momentum after the 2000 presidential election, when Congress and President George W. Bush started moving to make the Hope Credit permanent. As of 2003, the federal tax code allows parents who spend “up to $1,000” on their children’s education to take a credit of up to $1,500 against income tax liability. The idea is not limited to public schools; even home schools are eligible for the credit.
Make college more affordable
The Hope Scholarship has often described as a device to “make college more affordable.” But far from making college more affordable, it actually makes it less so. It has conceived not only to reduce taxes on middle class parents. But also to boost enrollment in higher education at public expense by giving them free money. And so it has designed to appeal particularly to upper-income people who can thereby receive a 100% rebate on their tuition.