Legislative Affairs

Have we weighed in on this? If not why not?

• IRS Call to Action: For many years the IRS has permitted taxpayers in 12 states to turn a profit by financially supporting private school voucher programs. This profitable tax shelter has fueled rapid growth in these voucher programs, leading to a major transfer of public dollars into private schools. Moreover, the profits being pocketed by these taxpayers come at the expense of state and federal budgets and do not find their way into any public school or public works project.  The profiteering facilitated by these tax credit vouchers schemes is neither accidental nor incidental. Tax accountants, private schools, and others in many states with tax credit voucher programs have long marketed these programs as tools for exploiting the federal charitable deduction. Given the Trump Administration's love of vouchers, we were quite surprised that the IRS has proposed regulations that would shut down this tax shelter and could significantly weaken the popularity and growth of the voucher programs in these 12 states. We have an opportunity as public education advocates to weigh in with the IRS and support these regulations, but the IRS is already facing extreme pressure by pro-privatization entities and members of Congress to keep them on the books. Please take 5 minutes to check out the AASA blog, access the template, and to file comments with the IRS. This is an opportunity to send more dollars into public schools both at the federal and state level. If you have any questions about this call to action, please contact Sasha Pudelski (spudelski@aasa.org)

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Jay Himes CAE
Executive Director
Pennsylvania ASBO
jhimes@pasbo.org
Harrisburg, PA
United States
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Original Message------

Have we weighed in on this? If not why not?

• IRS Call to Action: For many years the IRS has permitted taxpayers in 12 states to turn a profit by financially supporting private school voucher programs. This profitable tax shelter has fueled rapid growth in these voucher programs, leading to a major transfer of public dollars into private schools. Moreover, the profits being pocketed by these taxpayers come at the expense of state and federal budgets and do not find their way into any public school or public works project.  The profiteering facilitated by these tax credit vouchers schemes is neither accidental nor incidental. Tax accountants, private schools, and others in many states with tax credit voucher programs have long marketed these programs as tools for exploiting the federal charitable deduction. Given the Trump Administration's love of vouchers, we were quite surprised that the IRS has proposed regulations that would shut down this tax shelter and could significantly weaken the popularity and growth of the voucher programs in these 12 states. We have an opportunity as public education advocates to weigh in with the IRS and support these regulations, but the IRS is already facing extreme pressure by pro-privatization entities and members of Congress to keep them on the books. Please take 5 minutes to check out the AASA blog, access the template, and to file comments with the IRS. This is an opportunity to send more dollars into public schools both at the federal and state level. If you have any questions about this call to action, please contact Sasha Pudelski (spudelski@aasa.org)

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Jay Himes CAE
Executive Director
Pennsylvania ASBO
jhimes@pasbo.org
Harrisburg, PA
United States
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Hi Jay and Michael,

This is indeed a rather complicated issue, so we have conferred with ASBO International's Legislative Advisory Committee (LAC) to determine the best path for moving forward.

We realize that the IRS proposed regulation would not only impact private school tuition tax credit programs, but also other charitable programs including several state programs designed to mitigate the impact of the SALT cap enacted by the Tax Cuts and Jobs Act. ASBO International has historically opposed capping the SALT deduction and still supports its full reinstatement. As such, ASBO International submitted the attached comments to the IRS expressing several concerns regarding the charitable tax credit loophole and ongoing cap of the SALT deduction without taking a hard stance on the proposal.

Should you wish to submit comments to the IRS on this issue, please review the proposed rule and click the blue "Comment Now!" button to submit your feedback by October 11.

Thank you.

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Elleka Yost
Government Affairs & Communications Manager
ASBO International
eyost@asbointl.org
Ashburn, VA
United States
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Original Message:
Sent: 09-19-2018 08:17
From: Michael Borges
Subject: Tax Credits

Jay, its a bit more complicated situation. In New York, we oppose the new proposed IRS regulations because it attempts to undermine efforts in our state, Connecticut, New Jersey and California to mitigate the negative impacts of the Trump Tax cuts that capped itemized deductions at $10,000.

CHECK OUT OUR NEW WEBSITE: ASBONewYork.org 

Michael J. Borges
Executive Director
Association of School Business Officials of New York | ASBO New York

453 New Karner Road
Albany, New York 12205
(518) 434-2281, ext. 108
(518) 434-1303 fax
mborges@asbonewyork.org 

Original Message------

Have we weighed in on this? If not why not?

• IRS Call to Action: For many years the IRS has permitted taxpayers in 12 states to turn a profit by financially supporting private school voucher programs. This profitable tax shelter has fueled rapid growth in these voucher programs, leading to a major transfer of public dollars into private schools. Moreover, the profits being pocketed by these taxpayers come at the expense of state and federal budgets and do not find their way into any public school or public works project.  The profiteering facilitated by these tax credit vouchers schemes is neither accidental nor incidental. Tax accountants, private schools, and others in many states with tax credit voucher programs have long marketed these programs as tools for exploiting the federal charitable deduction. Given the Trump Administration's love of vouchers, we were quite surprised that the IRS has proposed regulations that would shut down this tax shelter and could significantly weaken the popularity and growth of the voucher programs in these 12 states. We have an opportunity as public education advocates to weigh in with the IRS and support these regulations, but the IRS is already facing extreme pressure by pro-privatization entities and members of Congress to keep them on the books. Please take 5 minutes to check out the AASA blog, access the template, and to file comments with the IRS. This is an opportunity to send more dollars into public schools both at the federal and state level. If you have any questions about this call to action, please contact Sasha Pudelski (spudelski@aasa.org)

------------------------------
Jay Himes CAE
Executive Director
Pennsylvania ASBO
jhimes@pasbo.org
Harrisburg, PA
United States
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