And it's refundable
Reader comment on: Redistribution and the College Tax Credit
Submitted by fred Van Bennekom (United States), Oct 14, 2010 17:23
Here's more on the tax credit: "The American Opportunity Credit is not available on the 2008 returns taxpayers are filing during 2009. The new credit modifies the existing Hope Credit for tax years 2009 and 2010, making the Hope Credit available to a broader range of taxpayers, including many with higher incomes and those who owe no tax."
In other words, it's a refundable tax credit. And when the IRS writes the check, it's not considered "spending" in the budget; it's just less revenue.
Imagine if instead of subsidizing demand, the government expanded the supply? Since the government always increases its tuition subsidies, colleges are under no pressure to contain costs. Econ 101.
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|⇒ And it's refundable [113 words]||fred Van Bennekom||Oct 14, 2010 17:23|
[w/response] [15 words]
|Adam Smith||Oct 14, 2010 16:51|
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