Online Learning Update

May 11, 2018

The tax benefits for education don’t increase education

Filed under: Online Learning News — Ray Schroeder @ 12:04 am

by Susan M. Dynarski and Judith Scott-Clayton, Brookings

Economists George Bulman and Caroline Hoxby scoured hundreds of millions of tax returns searching for an effect of the tax credits and tuition deduction on educational outcomes.[1] They inspected anonymized, detailed, individual-level administrative data from the IRS on the population of potential tax filers. The IRS has developed secure mechanisms that allow these data to be analyzed without compromising the privacy of taxpayers.  Bulman and Hoxby use a regression-discontinuity design to estimate the effects of the tuition tax deduction for families around the maximum income cutoff for eligibility.[2] Again, they find no evidence that the deduction increases college enrollment. They also find no effect of the deduction on enrollment intensity, college choice, tuition paid, or student debt.⁠

The tax benefits for education don’t increase education

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