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Hidden Tax Preferences and the Real Costs of Tuition Tax Credits

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  • Robert A. Blewett

    (St. Lawrence University, Canton, New York)

Abstract

A hidden tax preference arises when religiously affiliated schools are financed by tax-deductible charitable contributions in lieu of tuition. This article explores the implicit contracts between parents and schools and examines potential free-rider problems. Revised estimates of the fiscal costs of a federal tuition tax credit are presented as well. Finally, the article shows how the existence of this preference makes the case for a federal tuition tax credit relatively stronger.

Suggested Citation

  • Robert A. Blewett, 1988. "Hidden Tax Preferences and the Real Costs of Tuition Tax Credits," Public Finance Review, , vol. 16(3), pages 330-340, July.
    • Handle: RePEc:sae:pubfin:v:16:y:1988:i:3:p:330-340
    DOI: 10.1177/109114218801600305
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    References listed on IDEAS

    as
    1. Edwin West, 1985. "The real costs of tuition tax credits," Public Choice, Springer, vol. 46(1), pages 61-70, January.
    2. Clotfelter, Charles T., 1985. "Federal Tax Policy and Charitable Giving," National Bureau of Economic Research Books, University of Chicago Press, edition 1, number 9780226110486.
    3. Dennis Mueller, 1986. "Rational egoism versus adaptive egoism as fundamental postulate for a descriptive theory of human behavior," Public Choice, Springer, vol. 51(1), pages 3-23, January.
    4. Charles T. Clotfelter, 1985. "Federal Tax Policy and Charitable Giving," NBER Books, National Bureau of Economic Research, Inc, number clot85-1.
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    Cited by:

    1. F. Martinello & E.G. West, 1991. "Education Budget Reductions Via Tax Credits: Some Further Considerations," Public Finance Review, , vol. 19(3), pages 355-368, July.

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