“Is the Tax Code the Proper Tool for Making Higher Education More Affordable?”
By Scott A Hodge and Kyle Pomerleau
- Education tax credits have grown from a $4.5 billion program claimed by 4.7 million taxpayers in 1998 to a $17.4 billion program claimed by over 7 million taxpayers in 2011.
- Despite the use of tax credits, in the last decade student loan debt rose from just over $400 billion to nearly $1 trillion in 2012, while the cost of college rose 70 percent.
- . . . Education tax credits are not well targeted toward low- and middle- income families; roughly 30 percent of the current benefits of education tax credits accrue to taxpayers earning over $100,000 and an additional 18 percent accrues to those earning over $75,000.
- . . . Trading the elimination of education tax credits for lower marginal tax rates would grow the economy by $19 billion per year and create 121,000 jobs. READ MORE HERE