Bill Overview
Title: Education, Achievement, and Opportunity Act
Description: This bill allows a new refundable tax credit for the qualified education expenses of a taxpayer's child, up to $10,000 for each child. These expenses include tuition and fees for attendance at a public or private elementary or secondary school, and up to $1,500 of expenses for computers and educational software, tutoring, special needs services, transportation services, and academic testing services.
Sponsors: Rep. Smith, Christopher H. [R-NJ-4]
Target Audience
Population: Families with school-aged children worldwide
Estimated Size: 54000000
- The bill allows a new refundable tax credit for qualified education expenses per child.
- These expenses include tuition and fees for attendance at public or private elementary or secondary schools.
- It also covers expenses for computers, educational software, tutoring, special needs, transportation, and academic testing.
- The tax credit is up to $10,000 per child, affecting families with school-aged children.
Reasoning
- The target population is families with school-aged children in the US, estimated to be around 54 million.
- Budget considerations limit the full impact as the policy aims for a large population with a capped spending capability.
- Tax credits offer variable impact depending on income and current educational expenditure.
- Wellbeing should increase as the financial burden of educational expenses decreases, but the increase will vary depending on the prior financial strain.
Simulated Interviews
Public School Teacher (Austin, Texas)
Age: 35 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- This will help me afford extra tutoring for my kids.
- Being a single parent, any financial assistance is welcome.
- I'm worried the tax credit won't cover everything.
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 | 8 | 6 |
| Year 20 | 8 | 6 |
Software Engineer (San Francisco, California)
Age: 30 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- This policy is good, but it's not a game changer for us.
- We already budget for educational expenses, so this is just a bonus.
- I'm glad this helps others more than us.
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 |
Stay-at-home Parent (Detroit, Michigan)
Age: 40 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 20.0 years
Commonness: 3/20
Statement of Opinion:
- This tax credit will provide much needed relief.
- We've struggled with extra costs for our children's education.
- The savings will help us with other bills as well.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 5 |
| Year 2 | 7 | 5 |
| Year 3 | 7 | 5 |
| Year 5 | 8 | 5 |
| Year 10 | 8 | 5 |
| Year 20 | 8 | 5 |
Nurse (Miami, Florida)
Age: 29 | Gender: other
Wellbeing Before Policy: 4
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- This will be a significant help in managing educational expenses.
- I'm concerned about budgeting and hoping this stays in place long enough to make a difference.
- My children's education is a top priority, so this is a positive step.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 4 |
| Year 2 | 6 | 4 |
| Year 3 | 6 | 4 |
| Year 5 | 6 | 4 |
| Year 10 | 6 | 4 |
| Year 20 | 5 | 4 |
Freelancer (Portland, Oregon)
Age: 36 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- It's good to see government support for education.
- This might help cover unexpected costs, but I need consistent income for full benefits.
- I hope there are no bureaucratic hurdles.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 5 | 4 |
Marketing Manager (Chicago, Illinois)
Age: 44 | Gender: male
Wellbeing Before Policy: 9
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- This is nice, but it won't affect us much.
- We have our kids' education budgeted out already.
- Hopefully, this helps lower income families more.
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 |
Retail Worker (Atlanta, Georgia)
Age: 27 | Gender: female
Wellbeing Before Policy: 4
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- Being able to help my niece more would be amazing.
- Direct benefits might be low as I have no children myself.
- Still, any financial relief is welcome.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 4 |
| Year 2 | 5 | 4 |
| Year 3 | 5 | 4 |
| Year 5 | 5 | 4 |
| Year 10 | 5 | 4 |
| Year 20 | 4 | 3 |
Accountant (New York, New York)
Age: 50 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- It's a positive measure, but won't fully relieve our stress.
- Educational costs in New York are high, so more support would be beneficial.
- Every bit of help is appreciated.
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 | 6 | 5 |
Restaurant Owner (Phoenix, Arizona)
Age: 41 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 15.0 years
Commonness: 4/20
Statement of Opinion:
- The policy could help stabilize my financial planning for my kids' education.
- Running a business is unpredictable, so this support might ease some pressure.
- I'm cautious about how this will be implemented.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 6 | 5 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 4 |
Engineer (Raleigh, North Carolina)
Age: 38 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 3.0 years
Commonness: 4/20
Statement of Opinion:
- I'm happy to see investment in education, although my financial situation is stable.
- This may encourage us to invest more in extracurricular activities for my child.
- It's a beneficial step forward.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 8 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $400000000000 (Low: $350000000000, High: $450000000000)
Year 2: $405000000000 (Low: $355000000000, High: $455000000000)
Year 3: $410000000000 (Low: $360000000000, High: $460000000000)
Year 5: $420000000000 (Low: $365000000000, High: $475000000000)
Year 10: $440000000000 (Low: $390000000000, High: $490000000000)
Year 100: $440000000000 (Low: $390000000000, High: $490000000000)
Key Considerations
- The estimate assumes relatively high adoption and eligibility rates.
- Potential unintended consequences include the pressure to increase tuition or fees as schools respond to this increased financial provision potential.
- Inflationary pressures on estimated costs and credits need consideration.
- Implementation will require robust monitoring protocols to ensure claims are legitimate and within the defined expenses.