Public Funds for Public Schools Act

Mr. Speaker, I rise today to shed light on a major loophole in our tax code that favors private schools at the expense of public schools. I have introduced H.R. 4269, The Public Funds for Public Schools Act which would close this loophole that allows the wealthy to profit off their ``donations'' to private school voucher organizations. In 18 states, laws have been passed allowing wealthy donors to claim tax credits for donations that go to private, often unaccredited, schools.

In these states, tax credits are awarded to taxpayers who donate to private school voucher organizations. At least eleven states offer a dollar-for-dollar credit, which allows wealthy donors to donate to Scholarship Granting Organizations without losing any money because the state ends up bearing the full cost of the donation. When combined with a federal charitable tax deduction, the dollar-for-dollar state credit ends up resulting in a taxpayer-funded profit for the so-called ``donor.''

Wealthy donors reap the benefits while our public-school children are left with substandard resources in some of the most impoverished areas of the country. This is a major loophole in our tax code. Not only are states reimbursing the wealthy rather than investing in public education, but federal dollars are being given to the wealthy at the blatant expense of public school children and educators. To be clear, the American taxpayer bears the cost of this lucrative tax shelter, and the American public is left with less funding for our public schools.

Mr. Speaker, I am a proud product of public schools. After the Brown v. Board of Education decision, small private all white academies started to pop up in many Southern states, including one in my hometown. Selma High School, where I graduated, provided me with a quality education. I was on the renowned Selma High School debate team and we won competitions across the state.

Over the decades, many ``concerned'' white parents have taken their kids out of public schools, sending them to the private academy across town. This process has led to re-segregation of schools in many parts of the South. After years of losing revenue to private schools, my old high school is deemed as ``failing'' today by the state of Alabama. Moreover, there aren't enough resources to provide debate and other extracurricular activities to the children.

State laws like the one providing a dollar-for-dollar tax credit to private academies have further exacerbated these trends. Until this year, the academies in my state didn't even have to be accredited to qualify for the voucher program.

Thirty-five states provided less overall state funding per student in the 2014 school year than before the recession in 2008. When the Republican tax bill was signed into law last year, deductions for state and local tax payments were capped at $10,000, leaving some wealthier taxpayers looking for new and creative ways to reduce their tax liability. In response, more state legislatures are considering laws to pass this lucrative taxpayer-funded loophole.

H.R. 4269, The Public Funds for Public Schools Act, would remove this loophole by reducing the double deductions benefit on these donations, saving money that could be reinvested in public schools that are struggling to provide adequate resources for their students.

We have a responsibility to our children and their future to do the right thing. I urge my colleagues to co-sponsor H.R. 4269.