Chance Is Seen
For Tax Relief
In School Costs
By ARNOLD B. SAWISLAK
United Press International
Washington - H'PIl - The
Idea of federal school aid
through tax relief, like the
little man who wasn't
there, has been proclaimed
by experts to be a figment
ot the imagination. But it
still won't go away.
Bills to permit income
tax deductions or credits
for educational expenses
have been hard congression
al perennials for years.
They have been poured into
House and Senate hoppers
every year with appropriate
pledges from their sponsors
to demand quick passage.
That was the last to be
heard of them.
The bills have aroused
even more interest than
usual in the 88th Congress.
In the months since Con
gress convened, more than
100 members of the House
and Senate have sponsored
legislation of this sort.
Given A Slim Chance
This year, for the first
time, tax relief for educa
tional expenses is given a
slim chance, for several
reasons.
In past years, the strong
est supporters of such bills
knew they were bucking un
beatable treasury and White
House opposition. A bill
carrying this kind of tax
relief seemed sure to be
vetoed. As a result, there
was very little effort to get
House or Senate action.
But this year, it could be
attached to the general' in
come tax reduction measure
that appears sure to pass.
As part of a tax-cutting bill
that President Kennedy had
given top priority, the pro
posal would be virtually
veto-proof.
On Same Road to Defeat
Another factor is the
general feeling that Ken
nedy's proposals for direct
federal aid to public schools
are on the same road to
defeat they traveled in 1961
62. More than one congress
man has suggested that tax
relief for the parents of
parochial school students
would be "the way out" of
the heated church - state
argument that has helped
scuttle all aid to education
plans.
Some believe that pas
sage of a tax relief measure
for church and private
school expenses would open
the way for approval of gen
eral federal aid to public
schools. They see it as a
means to the ends sought
by Kennedy.
Opposition to the propos
als is impressive. Adminis
tration officials and many
leaders of national educa
tional organizations are
dead set against them.
Plan Cost Too Much
The government officials'
principal objection is that
the relief plans would cost
too much. Educators argde
the proposals might help
some families hard-hit by
educational expenses, but
there is no guarantee they
would help the schools.
There also is feeling in
both groups that if they
relax their opposition to tax
relief as a school aid de
vice, that would be all the
assistance American educa
tion will get from Congress
for a long time to come.
Support for the proposals
defies classification.
For example, Sen. Barry
Goldwater (R - Ariz.) says
he believes there is no need
for federal aid to schools.
But, he adds, if such a need
can be shown, the way to
meet it is with tax deduc
tions for college expenses
and tax credits for local
elementary and secondary
school levies.
Introduces Several Bills
At the same time, Rep.
Adam Clayton Powell iD
N.Y.) chairman of the House
Education and Labor Com
mittee which has tried for
years to push over a direct
federal school aid plan, has
introduced several educa
tion bills.
All the measures vary
widely. Most would give tax
relief for the expenses of
sending a boy or girl
through college. Some
would cover the expenses
of private and parochial
school tuition at the grade
and hign school levels. A
few would cover all educa
tional expense? kinder
garten to graduate school.
They would offer differ
ing types of relief.
Some would permit a tax
paver to include all or
part of his expenses for
education in his deductions,
along with charitable con
tributions, taxes, interest
payments and medical expends.
A smaller number would
give additional exemptions
for dependents attending
private schools or colleges.
Others would give tax
credits for all or part of the
education expenses. This
would permit the taxpayer
to simply subtract from his
tax bill the allowable por
tion of school expenses.
If any proposal is to get
anywhere, a tax credit plan
seems to be most likely.
The kind of tax relief
offered makes a difference,
both to the taxpayer and the
government.
Would Lose Tax Revenues
For example, if a deduc
tion were permitted for
college tuition, books and
living expenses up to $1,000
a year, the treasury could
figure on losing $750 mil
lion in tax revenues. This
would increase to a si bil
lion loss in three years,
officials estimated.
A S600 additional exemp
tion for taxpayers with de
pendents in college would
cost S400 million a year.
Bills permitting a tax
credit for college tuition
expenses up to $300 a year
would cost an estimated
$750 million to $850 mil
lion a year.
While deductions and
credits would have a simi
lar effect on the treasury,
individual taxpayers would
see a wide difference.
Same for Everyone
A $300 credit would be
the same for everyone. The
.person earning $8,000 a
year would get the same
maximum benefit as the
$80,000-a-year man. That is
because the credit would be
subtracted after the taxes
are computed.
But a $1,000 deduction
would yield widely varying
benefits. The taxpayer in
the lowest bracket, 20 per
cent, would save $200 from
the maximum deduction. A
high-income person in the
top, 91 per cent, bracket,
would get a $910 tax sav
ing. The educators' argument
against tax relief is that
there is no way to be sure
it will help the schools. The
only way that could be as
sured would be for every
school to raise its tuition,
and they don't want to en
courage that.
Should Do It Directly
The schoolmen say that
if the federal government
has a responsibility to im
prove education, it should
do so directly. Most spokes
men for the big national
educational groups say this
can be done without giving
the federal government con
trol over what is taught in
local schools.
On this point, many ad
vocates of the tax relief ap
proach argue that the gov
ernment has a duty to make
sure that direct aid is used
for the purposes intended.
They say this is a form of
federal control and auto
matically unacceptable.
Some supporters of both
tax relief and direct school
aid believe deductions, ex
emptions or credits open the
way to settlement of the
church - state battle. They
feel that congressmen now
opposing general school aid
unless it includes parochial
institutions would relent if
there was tax relief.
Small Piece of Pie
There is some evidence
that this is not so. Msgr.
Frederick Hochwalt, educa
tion director of the National
Catholic Welfare Confer
ence, told the House Edu
cation and Labor Committee
that "this is only a small
piece of the pie and con
sequently a lot of parents
would question it." In addi
tion, he said, the aid would
be only "slight" to low in
come families.
The argument continues.
At present, tax relief does
not seem to have a chance
for inclusion in the bill now
under consideration in the
House Ways and Means
Committee. If the commit
tee fails to put such a plan
into the bill, the House will
have no chance to do so.
The picture may be dif
ferent after the bill is out
of the House. While the
Senate Finance Committee
is not expected to endorse
such a plan, supporters
would have a good chance
to add one to the bill on the
Senate floor.
Then, it would be up to
a House-Senate conference
compromise committee. If
the Senaie has approved
tax relief for educational
expenses by a convincing
majority, it might survive
the pulling and hauling that
leads, to the final tax bill.
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