Video: Education tax credit makes great leap forward, The Lobby, Kevin Landrigan, 4/6/12

posted Apr 11, 2012, 4:43 AM by Bill Duncan   [ updated Apr 11, 2012, 6:15 AM ]

This is a great balanced overview of the voucher program and the mechanics of downshifting the cost of the vouchers to local tax payers.  Kevin does express admiration for how the bill has come this far and the House and Senate have cooperated better than they usually do but, of course, this started out as a bill sponsored by the leadership of both houses.

One detail: Kevin might be vague, as most people are, on how tax credits work.  He says that when businesses contribute to a scholarship fund, they would get a credit against either business profits tax or business enterprise tax of "up to" 85%.  Actually, the tax credit would always be for 85% of what they give.  There's no "up to" about it.  And if the credit is against the business profits tax, the way it's all figured would lead to an additional 8.5% benefit, so they really get back from the state 93.5% of what they contributed.  Then they get the federal tax deduction.

And he points out, with journalistic understatement, that the Governor will probably veto the bill and it's not clear that there will be the votes in the House to override the vote.  (DNHPE would point out that override would require a massive defection among the 49 Republicans who voted against the bill the first time and many of them have expressed deep and implacable opposition.  So, we'll see.)