[Congressional Record Volume 164, Number 126 (Thursday, July 26, 2018)]
[Extensions of Remarks]
[Page E1081]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




     SUPPORTING H.R. 4269--THE PUBLIC FUNDS FOR PUBLIC SCHOOLS ACT

                                 ______
                                 

                          HON. TERRI A. SEWELL

                               of alabama

                    in the house of representatives

                        Thursday, July 26, 2018

  Ms. SEWELL of Alabama. Mr. Speaker, I rise today to shed light on a 
major loophole in our tax code that favors private schools at the 
expense of public schools. I have introduced H.R. 4269, The Public 
Funds for Public Schools Act which would close this loophole that 
allows the wealthy to profit off their ``donations'' to private school 
voucher organizations. In 18 states, laws have been passed allowing 
wealthy donors to claim tax credits for donations that go to private, 
often unaccredited, schools.
   In these states, tax credits are awarded to taxpayers who donate to 
private school voucher organizations. At least eleven states offer a 
dollar-for-dollar credit, which allows wealthy donors to donate to 
Scholarship Granting Organizations without losing any money because the 
state ends up bearing the full cost of the donation. When combined with 
a federal charitable tax deduction, the dollar-for-dollar state credit 
ends up resulting in a taxpayer-funded profit for the so-called 
``donor.''
   Wealthy donors reap the benefits while our public-school children 
are left with substandard resources in some of the most impoverished 
areas of the country. This is a major loophole in our tax code. Not 
only are states reimbursing the wealthy rather than investing in public 
education, but federal dollars are being given to the wealthy at the 
blatant expense of public school children and educators. To be clear, 
the American taxpayer bears the cost of this lucrative tax shelter, and 
the American public is left with less funding for our public schools.
   Mr. Speaker, I am a proud product of public schools. After the Brown 
v. Board of Education decision, small private all white academies 
started to pop up in many Southern states, including one in my 
hometown. Selma High School, where I graduated, provided me with a 
quality education. I was on the renowned Selma High School debate team 
and we won competitions across the state.
   Over the decades, many ``concerned'' white parents have taken their 
kids out of public schools, sending them to the private academy across 
town. This process has led to re-segregation of schools in many parts 
of the South. After years of losing revenue to private schools, my old 
high school is deemed as ``failing'' today by the state of Alabama. 
Moreover, there aren't enough resources to provide debate and other 
extracurricular activities to the children.
   State laws like the one providing a dollar-for-dollar tax credit to 
private academies have further exacerbated these trends. Until this 
year, the academies in my state didn't even have to be accredited to 
qualify for the voucher program.
   Thirty-five states provided less overall state funding per student 
in the 2014 school year than before the recession in 2008. When the 
Republican tax bill was signed into law last year, deductions for state 
and local tax payments were capped at $10,000, leaving some wealthier 
taxpayers looking for new and creative ways to reduce their tax 
liability. In response, more state legislatures are considering laws to 
pass this lucrative taxpayer-funded loophole.
   H.R. 4269, The Public Funds for Public Schools Act, would remove 
this loophole by reducing the double deductions benefit on these 
donations, saving money that could be reinvested in public schools that 
are struggling to provide adequate resources for their students.
   We have a responsibility to our children and their future to do the 
right thing. I urge my colleagues to co-sponsor H.R. 4269.

                          ____________________