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View Diary: Georgia gives tax support to schools that expel kids for being gay or not hating gays enough (73 comments)

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  •  only state schools (6+ / 0-)

    that guaranty equal access to all children.

    •  jfromga - do you know how the program (0+ / 0-)

      actually works? I assume there is some limit on the credit. Does the credit reduce state income taxes dollar for dollar?

      "let's talk about that"

      by VClib on Tue Jan 22, 2013 at 10:27:25 AM PST

      [ Parent ]

      •  the Department of Education Site (1+ / 0-)
        Recommended by:
        irishwitch

        http://www.doe.k12.ga.us/...

        Explanations and copy of the law at the site

        One of the legislators who introduced the bill and his faith based school charity:

        http://www.faithfirstga.org/...

        His hometown:

        Powder Srprings, Cobb County, Georgia, part of the metro Atlanta/Marietta bedroom communities, well above median state income:

        http://www.cityofpowdersprings.org/...

        The city has had about a 12 point shift upwards in the African American demographic between the 2000 and 2010.  Cobb County is a typical Atlanta area county, with a fair amount of de facto segregation by zip code. Better than the bad old days, but still work to be done to break down barriers.

        These charities are moving the opposite direction.  Aimed t make it easier to move children out of the public schools and cut down on taxes.  

        •  Atlanta/Fulton County - Big City (2+ / 0-)
          Recommended by:
          pyegar, lyvwyr101

          Cobb County - well-off snobby elitists and biblethumpers.

          Anti-gay to the core, caused a stick over an anti-gay law or someting back during the 96 Olympics.

          Kennesaw, part of Cobb, requires every home to have at least one gun.

          And 3 banjos.

          The path of the righteous man is beset on all sides by the inequities of the selfish and the tyranny of evil men.

          by xxdr zombiexx on Wed Jan 23, 2013 at 05:59:08 PM PST

          [ Parent ]

    •  The credit has a limit of $1,000 per individual (1+ / 0-)
      Recommended by:
      Eyesbright

      or $2,500 for a couple filing jointly, or the amount of the contribution whichever is less. There is also a federal offset provision which can reduce the write off. There is an annual max for each scholarship of $9,800.

      So it's not a program where parents could turn $20,000 of private school tuition into a tax write off. However, if parents funded at the $2,500 level and their child received a $2,500 scholarship at a parochial school that would likely cover a meaningful portion of the tuition.

       

      "let's talk about that"

      by VClib on Tue Jan 22, 2013 at 01:22:53 PM PST

      [ Parent ]

      •  but corporations can make larger (1+ / 0-)
        Recommended by:
        Eyesbright

        contributions, so small businesses may contribute before taxes, and the owner of the small business may contribute.  There can be no direct promise of a scholarship, but there's promises and promises.

        Plus the individuals are limited on their Georgia returns, but can take a larger federal deduction.   It can amount to significant savings for the right people.   As most tax policy is structured, taxes favor the rich.

        •  jfromga - how much are the max corp contributions? (1+ / 0-)
          Recommended by:
          lyvwyr101

          I noticed that all potential participants have to pre-submit an application, which must be approved, before they can make the contribution. Also, there is an annual state wide cap, which is likely why there is pre-approval process.

          "let's talk about that"

          by VClib on Tue Jan 22, 2013 at 05:42:55 PM PST

          [ Parent ]

          •  Fifty million state wide cap (3+ / 0-)
            Recommended by:
            xxdr zombiexx, yella dawg, lyvwyr101

            so chances are plenty of people will make contributions.

            I don't remember exactly,   but caps at 75% of tax obligation.   The link has a link to the statute.

            I haven't looked at regulations,  so I don't know what pass through options, etc. do to affect small closely held corporations that have S treatment, etc.

            Nevertheless,  the example at the DOR website shows a couple with a $4000 charitable exemption at the federal level calculation, will also get $1500 credit on state taxes after the caps are applied.   That can easily be 25% of the  state tax burden of a family making about $75K.It is a meaningful shift in tax burdens.

        •  does that apply to sole proprietorships (1+ / 0-)
          Recommended by:
          lyvwyr101

          and S corps?  It would not be difficult to set up a shell corporation for the explicit purpose of funneling cash.  Also, how restrictive are the scholarships?  How much can they be targeted to match the needs of specific students?

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