One of the most polarizing issues in Governor Andrew Cuomo’s budget is an education tax credit that would allow donors of up to $1 million to public and private schools to receive a tax benefit. Opponents say it benefits the rich, supporter say it helps poor children. Under the provisions of the education tax credit proposed by Governor Cuomo, people and businesses can donate up to $1 million to a scholarship fund to send underprivileged children to private schools, or support enhanced programs at public schools. They would receive 75 percent of the money back in the form of a tax credit. Teachers unions and their allies oppose the plan. “It’s nothing more than a giveaway to the wealthy and corporations,” said Ron Deutsch, with the think tank Fiscal Policy Institute, which is in part funded by unions. He says it’s also bad tax policy that could harm other charitable organizations. Under current laws, a million dollar charitable donation nets the donor just $22,000 in tax credits. He
↧