Policy Documents

Donating the Voucher: An Alternative Tax Treatment of Private School Enrollment

Andrew Samwick –
May 1, 2014

Paying out of pocket for a child to attend a private school creates a “positive externality.” Families that make this choice are relieving the tax payers who would otherwise have to pay for the education of these children. To offset the externality, there should be a “tax deduction for parents who send their children to private schools, in the amount of the per pupil expenditure in their local public schools.” We need to treat voucher donations as charitable gifts from parents who choose to send their children to private schools.