Bill Overview
Title: Educational Choice for Children Act
Description: This bill allows individuals and corporations a new tax credit after 2022 for charitable contributions to tax-exempt organizations that provide scholarships to elementary and secondary school students. Such students must be members of a household with incomes not greater 300% of the area median gross income and be eligible to enroll in a public elementary or secondary school. The bill excludes from the gross income of taxpayer dependents any scholarship amount for the elementary or secondary education expenses of eligible students. It also prohibits governmental control over scholarship granting organizations.
Sponsors: Rep. Walorski, Jackie [R-IN-2]
Target Audience
Population: School-aged children in financially eligible households
Estimated Size: 15000000
- There are approximately 1.5 billion school-aged children globally.
- In the US, there are about 50 million students in public elementary and secondary schools.
- The target students are those in households with incomes not greater than 300% of the area median gross income, which in the US represents a significant portion of the population.
Reasoning
- The policy targets children in households earning up to 300% of the area median income, which includes a significant portion of middle-income families.
- The $3.5 billion budget in the first year must be allocated among eligible students, potentially covering a substantial portion of their educational costs.
- The wellbeing scores are expected to improve for families directly benefiting from the policy due to reduced financial stress.
- The diversity of families affected will help provide a comprehensive view of the policy's impact.
- A variety of scenarios need to be considered, including those who do not directly benefit from the policy and those with indirect benefits.
Simulated Interviews
Teacher (Atlanta, GA)
Age: 38 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 15/20
Statement of Opinion:
- I believe this policy will help many families, including mine, afford better educational opportunities for our kids.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 4 |
Small business owner (Chicago, IL)
Age: 45 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 10/20
Statement of Opinion:
- As a single parent, any support that can ease financial burdens is welcome. I hope this policy can help reduce costs.
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 | 7 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Financial analyst (Dallas, TX)
Age: 50 | Gender: female
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 5/20
Statement of Opinion:
- This policy won't apply to my family, but I can see the value it would add to others in different situations.
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 |
Software engineer (San Francisco, CA)
Age: 32 | Gender: other
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 8/20
Statement of Opinion:
- This policy doesn't impact me directly, but I appreciate the focus on helping families in need.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Hospital nurse (New Orleans, LA)
Age: 42 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 12/20
Statement of Opinion:
- Our budget is tight, and this policy could give our children access to better education without the 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 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 7 | 5 |
Admin assistant (Miami, FL)
Age: 29 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 13.0 years
Commonness: 14/20
Statement of Opinion:
- Being a single mom is tough, especially financially. This policy could mean a better school for my son.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 7 | 4 |
| Year 10 | 7 | 4 |
| Year 20 | 6 | 4 |
Retired (Seattle, WA)
Age: 63 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- This policy seems beneficial for younger families but doesn't affect me.
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 |
Accountant (Los Angeles, CA)
Age: 37 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 12.0 years
Commonness: 13/20
Statement of Opinion:
- This policy could relieve a lot of our financial anxieties about choosing a school for our kids.
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 | 7 | 5 |
Electrician (Denver, CO)
Age: 28 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 0.0 years
Commonness: 9/20
Statement of Opinion:
- I think it's great for future family planning. It'll make things more affordable once we have kids.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 6 |
| Year 20 | 6 | 6 |
University professor (Boston, MA)
Age: 55 | Gender: female
Wellbeing Before Policy: 9
Duration of Impact: 0.0 years
Commonness: 6/20
Statement of Opinion:
- This policy is a step towards better educational options for families who need it.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 9 | 9 |
| Year 2 | 9 | 9 |
| Year 3 | 9 | 9 |
| Year 5 | 9 | 9 |
| Year 10 | 9 | 9 |
| Year 20 | 9 | 9 |
Cost Estimates
Year 1: $3500000000 (Low: $3000000000, High: $4000000000)
Year 2: $3650000000 (Low: $3150000000, High: $4150000000)
Year 3: $3800000000 (Low: $3300000000, High: $4300000000)
Year 5: $4000000000 (Low: $3500000000, High: $4500000000)
Year 10: $4500000000 (Low: $4000000000, High: $5000000000)
Year 100: $25000000000 (Low: $20000000000, High: $30000000000)
Key Considerations
- The policy could shift enrollments from public to private schools, influencing public school funding needs and dynamics.
- The long-term educational outcomes and lifetime earnings for recipients may reduce government spending on public assistance.
- The size of the tax credit and the size of the eligible population are crucial in determining real economic impacts.