There is no nice way to say it–it’s a tax scam to promote vouchers.
Twelve states have designed ingenious ways to use the U.S. tax code so that businesses and the wealthy can make money when they “contribute” to voucher programs.
Here is how it works. A business or taxpayer makes a donation to a state voucher “scholarship.” Then the state gives all or most of the “donation” back as a tax credit. The donor then deducts the donation as a charitable deduction on federal taxes, even though they got the money back.
And right now it is perfectly legal.
The profiteering resulting from these tax credit voucher schemes has been marketed by tax accountants, private schools, and voucher proponents. And all of this means less money for public schools in state and federal coffers.
The good news is that the IRS is now trying to stop this.
The bad news is that Betsy DeVos’s American Federation for Children and EdChoice are mobilizing thousands to pressure the IRS to keep the scam going.
Please file your comment today with the IRS and tell them “close the loophole.”
This is all you have to do.
- Go to https://www.regulations.gov/comment?D=IRS-2018-0025-0001
- In the ‘Comment” box, type the phrase “I submit this comment in response to the IRS proposed regulations on Contributions in Exchange for State and Local Tax Credits.” Then continue with your comment. We give you a model comment to paste in below.
- Enter your first and last name.
- Follow the directions to submit.
Below is a comment you can use:
I submit this comment in response to the IRS proposed regulations on Contributions in Exchange for State and Local Tax Credits. I am writing to thank the IRS for proposing the ending of a tax shelter that allows taxpayers to turn a profit when they fund private schools through state tuition tax credit programs. This comes at the expense of state and federal budgets. Meanwhile, people line their pockets while the rest of us pay our fair share of taxes.
Please stay the course and make sure that tax accountants, private schools, and others can no longer exploit the federal charitable deduction to promote voucher tax credits. Thank you.
It is extremely important that you do this. Please add your comment here today.
Then post this link on your Facebook page.