A Letter From the Citizen's Budget Commission Urging Rejection of the So-Called "Education Tax Credit"

CBC Urges Rejection of Tax Credit

 

The non-profit, non-partisan Citizens Budget Commission urges the state to reject the “Education Tax Credit.”

“Education Tax Credit.The Executive Budget proposes a new tax credit for donations to public and private schools to replace the existing income tax deduction. Taxpayers would receive a credit equal to 75 percent of the contribution, converting the value of the contribution from a deduction from income to a subtraction from tax liability. The value of the credit would be capped at $1 million per taxpayer and $100 million total for the State, allocated to taxpayers on a first-come, first-served basis. The measure creates an enhanced, potentially costly subsidy for private education. Benefactors of education charities should continue to enjoy the same benefits available for other charitable contributions.”