Tuition tax credits for the rich by any other name smell just as bad

by David Safier

Brewer vetoed a bill that would have increased the $500-per-person, 100% refundable private school tuition tax credit to $750. She was concerned that would take needed revenue from the state. Fair enough.

The $750-per-person bill is back in a revised form that pretends to address Brewer's sticking point, but doesn't. Not being a lege wonk, I don't understand how this can make it to Brewer's desk since the lege shut down for business, but Howie Fischer wouldn't write about it otherwise, I guess.

The change is, the new money — that last $250 — can only be used for families in the low-to-middle income levels, and only for children transferring from public schools.

So that addresses the problem of more money going to rich kids and people who are already in private schools, right? Absolutely wrong.

Here's an analogy. Dad drinks and gambles away too much of the family budget. Uncle Bill says, "Listen, I'll give you folks a little extra money each month, but it can only go for rent and food."

Will that stop dad from drinking and gambling? Hardly. He's still got all that money sitting there without the rent-and-food stipulation on it. As a matter of fact, he'll probably be gleefully rubbing his hands together and heading out to the casino, realizing now there's plenty of money to cover room and board. Expect his "recreational" spending to increase. Unless Uncle Bill insists, "Absolutely no gambling and no more than 2 beers a day if I give you the money," the family will be no better off — and maybe a little worse.

Unless you say all tuition tax credit dollars are limited to low/middle income families with children currently in public schools, you're actually increasing the amount of money that can be spent on the rich and those already in private schools by increasing the size of the pot, even if you put restrictions on some of the money.

Wanna bet Brewer signs this one? That's where my gambling money is going.

MAKING OUT LIKE A BANDIT NOTE: One of the people pushing the new bill is Republican Sen. Steve Yarbrough, who owns one of the STOs the tuition tax credit money gets funneled through. STOs get to keep 10% of whatever passes through their hands. Last time I checked, Yarbrough's company brought in about $14 million in tax credit money, which left $1.4 million for expenses — much of which winds up in his pocket. Every extra million from the new law that makes it to Yarbrough's STO is another $100,000 for him to get his hands on. Can you say Huge Conflict of Interest, boys and girls?