"The Fiscal Impact of a Large-Scale Education Tax Credit Program," by
Andrew J. Coulson, Policy Analysis no. 618, July 1, 2008
In this paper we estimate the budgetary impact of the Cato Institute's
Public Education Tax Credit model legislation on five states and
present a generalized spreadsheet tool ("the Fiscal Impact
Calculator") that can estimate the program's effect on any other state
for which the necessary input data are supplied. It is estimated that,
in its first 10 years of operation, savings from the PETC program
would range from $1.1 billion for South Carolina to $15.9 billion for
Texas. Illinois, Wisconsin, and New York are estimated to enjoy 10-
year savings within that range. Public Education Tax Credits reduce
the state and local taxes owed by anyone who pays for the private
schooling of an eligible child. Parents can claim credits for their
own children's educational costs, and other taxpayers (including
businesses) can claim credits when they pay for the education of
someone else's child, either directly or by donating to a nonprofit
scholar****p-granting organization.
pdf is at http://www.cato.org/pubs/pas/pa-618.pdf
http://www.cato.org/pub_display.php?pub_id=9515
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