[Congressional Record (Bound Edition), Volume 147 (2001), Part 19]
[Extensions of Remarks]
[Pages 26302-26303]
[From the U.S. Government Publishing Office, www.gpo.gov]



                  IN SUPPORT OF EDUCATION TAX CREDITS

                                 ______
                                 

                           HON. BOB SCHAFFER

                              of colorado

                    in the house of representatives

                      Thursday, December 13, 2001

  Mr. SCHAFFER. Mr. Speaker, I rise today to express my excitement for 
the next phase of education reform which will empower parents to make 
the best educational choices for their children. The bill before us 
today, the ``No Child Left Behind Act,'' will offer some small measure 
of parental options in the form of supplemental services for after-
school tutoring and other educational resources. These reforms are an 
important step toward educational choice, but the real victory for 
American schoolchildren will be found in the Administration's next 
education reform initiative--education tax credits.
  Shortly after President Bush took office in January of this year, he 
announced an innovative plan to offer children in failing schools the 
option of attending a private school of their choice. The proposal 
would have implemented much needed competition into our education 
system today and would have benefited all schoolchildren, public and 
private alike. Unfortunately, the President's proposal is not a part of 
the bill before us today. I am pleased to report, however, the 
President has indicated his full support and leadership for parental 
choice through tax credits in the next session of the 107th Congress.
  In the remainder of my time, I'd like to discuss some of the 
promising benefits and opportunities afforded children through 
education tax credit legislation.
  As you know, Mr. Speaker, the current tax system financially 
penalizes parents who send their children to schools other than the 
government-owned schools assigned to their children. A tax credit for 
educational expenses would allow parents to redirect their own money to 
pay expenses at a school that best meets the needs of their child.
  Parents across the country are becoming increasingly concerned about 
their children's education. More than $125 billion in federal funds 
have been directed toward K-12 education programs over the past 25 
years, but these increases in financial investment have not been 
accompanied by similar gains in student achievement. American children 
languish far behind their international peers in math and science; the 
racial achievement gap on test scores is widening; and test scores on 
the nation's report card (the National Assessment of Educational 
Progress) have remained largely stagnant over the past 20 years.
  Any business that received such poor profit margins in return for 
such large financial investments would be forced to close its doors, 
yet the federal government continues to funnel billions of American 
taxpayer dollars annually toward the government's education monopoly.
  Additional money, resources and programs--with all of the attached 
federal regulations and mandates--will not solve the nation's education 
crisis. These methods have been tested and tried without positive 
results. Fundamental changes to the structure of our education system 
are needed and this can only happen by relying on the power of free 
markets by empowering parents with the ability to select the best 
school options for their children, whether it is a government-owned, 
private or home school.
  Education tax credits are emerging as one of the most effective 
vehicles to encourage parental choice in education around the country. 
To date, six states have enacted some form of tax credit for elementary 
and secondary educational expenses--Arizona, Minnesota, Iowa, Illinois, 
Florida and Pennsylvania. A tax credit at the federal level would 
enable families to save on their federal income taxes, which are 
typically much higher than state income taxes. Nine states do not have 
a state income tax, therefore, a federal tax credit is their only 
option to receive educational assistance in this form. Moreover, 
federal education tax credits can provide a massive cash infusion 
toward a competitive, free-market education system in America.
  Mr. Speaker, there are many different kinds of tax credits, including 
credits for educational expenses incurred by families and credits for 
individual and corporate donations to educational scholarship 
foundations. The details of the President's legislation are 
forthcoming, but I think if we look to the example of education tax 
credits in the states, we will observe the exciting educational 
opportunities for children. In Arizona, for example, the state 
legislature passed a $500 tax credit for donations to scholarship 
foundations. The law has been effective since 1997, and since that time 
the number of scholarship organizations has grown from 2 to 34. Nearly 
$14 million was raised during that time through the donations of 30,000 
taxpayers. Arizona's tax credit could potentially raise $75 million in 
scholarships annually, according to some estimates.
  Another indication of the promise of tax credits is the overwhelming 
public support for such opportunities. A recent poll by McLaughlin and 
Associates, however, shows broad based support for education tax 
credits that cuts across party lines, ideologies, income levels, age 
and race. The poll found that seven out of 10 likely voters support 
providing $2,000 tax credits per child for all educational expenses, 
including tuition. Self-described liberals gave a 70 percent approval 
rating for the concept. African-Americans and households earning under 
$40,000 a year also show very high numbers of support (76.5 percent and 
75 percent, respectively).
  The corporate tax credit concept for donations to scholarship 
foundations or local schools had widespread approval ratings in the 
poll, as well. Nearly three in four Americans surveyed supported the 
idea, with more than 78 percent approval among blacks and 80 percent 
approval among Hispanics.
  Education tax credit programs have withstood challenges in court, as 
well. Six consecutive court challenges have gone in favor of tax credit 
legislation. The courts have found that tax credits merely allow 
families to keep a greater portion of their own private money and do 
not involve the transfer of public funds to schools or individuals.
  Finally, Mr. Speaker, education tax credits bypass the potential 
threat of government meddling. Many private school administrators are 
afraid to accept government assistance

[[Page 26303]]

due to the threat of greater government regulation that would 
compromise the autonomy and integrity of the school. Vouchers are 
particularly susceptible to government regulation. In Milwaukee, for 
example, schools involved in the district's voucher program are 
required to permit students to ``opt-out'' of religious activities--in 
effect, watering down the curriculum of the schools. Education tax 
credits, however, are more insulated from government regulation than 
vouchers because tax credits involve private money and do not 
constitute ``public'' spending.
  Thank you, Mr. Speaker, for giving me this time to discuss the future 
of education reform in America. We have all seen the effects of a 
government monopoly on our education system, and it isn't good. The 
absence of competition only benefits bureaucrats, not children. The 
time has come to give parents the option of sending their children to 
the schools of their choice, and I look forward to working with the 
President to successfully passing education tax credit legislation in 
the coming year.

                          ____________________