Bill Overview
Title: Expand Education Deduction for Teachers Act
Description: This bill increases the tax deduction for the expenses (from not in excess of $250 to not in excess of $2,000) of K-12 educators and includes early childhood educators for purposes of such deduction.
Sponsors: Rep. Velazquez, Nydia M. [D-NY-7]
Target Audience
Population: K-12 and early childhood educators
Estimated Size: 4600000
- The bill affects individuals recognized as educators, primarily teachers in the K-12 system.
- The bill also includes early childhood educators, broadening the scope to include those teaching at preschool or daycare levels.
- Teachers often spend their own money on classroom supplies, and the current deduction ($250) likely covers only a fraction of these expenses.
- By increasing the deduction to $2,000, more expenditure can be deducted, thus potentially impacting the financial situation of many educators.
Reasoning
- The population distribution includes a diverse range of educators across public and private K-12 schools and early childhood education settings.
- Budget constraints imply that only a portion of the entire eligible educator population will experience significant financial relief, depending on their spending on supplies.
- The policy will most directly benefit those who currently spend significantly more than $250 out of pocket, representing a subset but likely significant group within the 4-5 million educators.
- Educators with higher out-of-pocket expenses may see improvements in financial stress levels, which could translate into enhanced wellbeing scores.
- Wellbeing impacts are differentiated based on current financial burdens and personal economic contexts—some might experience direct financial benefits while others receive negligible personal impact.
Simulated Interviews
Public School Elementary Teacher (Atlanta, GA)
Age: 34 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- This increase means I can claim most of what I already spend on my class.
- It feels great to save more money without cutting into my teaching budget.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Private High School Math Teacher (New York, NY)
Age: 28 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 1.0 years
Commonness: 8/20
Statement of Opinion:
- I appreciate the gesture, but it won't significantly change my financial situation.
- It's a good option to have in case I decide to invest more in extracurriculars.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Preschool Educator (Dallas, TX)
Age: 55 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This policy acknowledges the effort we put into preparing our classrooms.
- More of my costs will be covered, relieving some personal financial strain.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 7 | 4 |
Public Middle School Art Teacher (San Francisco, CA)
Age: 45 | Gender: other
Wellbeing Before Policy: 6
Duration of Impact: 5.0 years
Commonness: 6/20
Statement of Opinion:
- This will help cover my usual expenses, freeing up funds for more ambitious class projects.
- I'm grateful to see early and art educators included.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Public High School Science Teacher (Seattle, WA)
Age: 39 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 7/20
Statement of Opinion:
- It's a relief to see more of my expenses covered.
- This helps justify my personal investment into student learning.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Public School Librarian (Phoenix, AZ)
Age: 62 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 1.0 years
Commonness: 3/20
Statement of Opinion:
- I see how this can be beneficial, although my direct usage of this deduction is limited.
- Allocating resources to support student reading without personal cost is great, even if indirect.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Public Kindergarten Teacher (Chicago, IL)
Age: 30 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 10/20
Statement of Opinion:
- Getting more of what I already spend back, fantastic!
- This eases financial stress significantly, allowing me to focus on teaching.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 8 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 4 |
Public School Music Teacher (Miami, FL)
Age: 42 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- This helps me continue offering diverse music options to students without personal financial anxiety.
- It gives a clearer recognition of what we invest in supportive learning.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Early Childhood Educator (Denver, CO)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- This will help with the costs of materials across our daycare operation.
- Relief from personal expenses can help in expanding our services.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Private Elementary School Teacher (Boston, MA)
Age: 36 | Gender: other
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- I think it's great for public educators, but it doesn't change much for me.
- Nonetheless, it's a step in the right direction for acknowledging education as an investment.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $3680000000 (Low: $2000000000, High: $5000000000)
Year 2: $3680000000 (Low: $2000000000, High: $5000000000)
Year 3: $3680000000 (Low: $2000000000, High: $5000000000)
Year 5: $3680000000 (Low: $2000000000, High: $5000000000)
Year 10: $3680000000 (Low: $2000000000, High: $5000000000)
Year 100: $3680000000 (Low: $2000000000, High: $5000000000)
Key Considerations
- The fiscal impact largely depends on the number of educators taking advantage of the maximum deduction.
- Estimate variability due to differences in educator income levels, which determine tax bracket impacts.
- Potential for increased classroom spending by educators could indirectly benefit educational outcomes.