The House GOP's reconciliation package includes a significant provision that allows wealthy individuals contributing to private schools to evade capital gains taxes. This measure, akin to the Educational Choice for Children Act, aims to encourage private school funding while critics claim it undermines public education. Analysis from the Institute on Taxation and Economic Policy indicates that nonprofits solely supporting private K-12 education would see enhanced tax incentives, creating disparity between education funding and donations to other important causes. The potential financial benefits for billionaires could be substantial.
The legislation allows wealthy individuals to avoid paying capital gains tax as a reward for funneling public funds into private schools.
While the bill significantly cuts charitable giving incentives overall, nonprofits that commit to focusing solely on supporting private K-12 schools would be spared from those cuts.
The House tax plan would create a system that treats people supporting private K-12 vouchers far more generously than donors to children's hospitals, veterans' groups, and every other cause.
The policy could have saved billionaire Elon Musk $690 million in federal taxes if implemented in 2021.
#school-privatization #tax-legislation #education-funding #wealth-inequality #public-vs-private-education
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