Private Education Tax Credits Upheld by U.S. Supreme Court

CNN ^ | April 4, 2011 | Bill Mears

[optiguy]

WASHINGTON (CNN) - The Supreme Court has tossed out a lawsuit challenging Arizona's tax breaks for voluntary donations benefiting private school scholarships, many of them Christian-based.

The 13-year-old program provides dollar-for-dollar income tax credits for money given to "school tuition organizations," or STOs.

The 5-4 ruling split along conservative-liberal lines. Writing for the majority, Justice Anthony Kennedy said taxpayers challenging the program lacked "standing" to continue the suit.

[newzjunkey]

I’m tired of courts hiding behind “standing.” Obama eligibility? Standing. Marriage? Standing.

[Raycpa]

but what if this were about donations to abortion facilities?

If a state wanted to provide tax credits against the state tax for whatever they can get passed, they should be able to without federal interference. It is their tax and the feds should have no say.

The problem with standing is who does this credit harm? There is no one that is harmed by the state allowing a credit against its tax. And yes, even a tax credit for abortion centers does not harm a Tea Partier.

[VRWCmember]

In this case the Tea Party folks may be in accidental sympathy with the Christian school folks, but what if this were about donations to abortion facilities?

If the abortion facilities qualified as 501(c) non-profits then donations would be tax deductible.

[skr]

You win your bet (no takers, I see). PP donations are “...tax-deductible to the fullest extent allowable under the law.” (as per their site)

[arrogantsob]

The article is not clear but apparently these donations provide STATE tax relief. Why would the federal court even have taken this case? It would seem as though this was a state issue to be decided by state courts. Where is the federal interest here?

[topher]

Good news ping!

[Atlas Sneezed]

The article is not clear but apparently these donations provide STATE tax relief. Why would the federal court even have taken this case? It would seem as though this was a state issue to be decided by state courts. Where is the federal interest here?

---

Presumably the Establishment Clause is argued. A tax credit is like a government payment to a religious entity, they would argue.

[CholeraJoe]

More tax breaks for rich fat cats. Penalizes working-class American union members, blah, blah.

[grayeagle]

"Why would the federal court even have taken this case? It would seem as though this was a state issue to be decided by state courts. Where is the federal interest here?"

You mean the Federal government doesn't have standing here?

/sarcasm off

[Excellence]

You would need to show income from sources outside yourself.

[Blood of Tyrants]

I sure could use that deduction on my federal return. The way I look at it, I am paying once for my daughter’s private education and again for a public education.

[triumphant values]

So instead of just ruling on the dang case while they had it in front of them, they ruled on its standing merits and kicked the can so the lower courts can be jammed up with "establishment clause" cases by individuals for years to come.

Way to go Supreme Court.

[NFHale]

“...Since when is Kennedy a conservative?...”

Evidently, today, he was...

Good for our side.

[unixfox]

A 5-4 vote. Another reason BO must lose in 2012.

I agree. We are just one heartbeat away from becoming a full fledged MARXIST controlled country.

[winstonwolf33]

Freedom - 1
Liberal Fascism - 0

[Tucsonican]

I sure could use that deduction on my federal return. The way I look at it, I am paying once for my daughter’s private education and again for a public education.

The deduction can be taken on your federal return but in AZ it's a dollar for dollar credit against the tax owed instead of a deduction to your taxable income.

[Blood of Tyrants]

The deduction can be taken on your federal return but in AZ it's a dollar for dollar credit against the tax owed instead of a deduction to your taxable income.

No, I am pretty sure that you can't take a tuition deduction for private school. If I am wrong, please direct me to some info to the contrary.

[Tucsonican]

No, I am pretty sure that you can't take a tuition deduction for private school. If I am wrong, please direct me to some info to the contrary.

You can't take a tuition credit for this contribution but it (CTSO) is an organization qualified for a charitable contribution deduction on your Schedule A. You can take that contribution deduction whether you live in AZ or not.

[mlo]

I’ve seen no evidence that is being abused. Only that some people don’t like it when it applies to a case they like.

[Gondring]

“Tax Credits” is just another way of saying that the government can confiscate your property and hold it hostage unless you act the way they approve.