President Trump’s tax-reform proposal was already historic, with Treasury Secretary Steve Mnuchin boasting that it called for the largest tax cut the nation has ever seen. But if Trump wants to make an even deeper impact, he’ll consider one addition: a federal tax credit that would pay the way for an unprecedented expansion of school choice.
During the campaign, Trump pledged to expand school choice with $20 billion in federal funds. Now he can win two victories at once: enact tax-reform and fulfill his school-choice promise.
Here’s how such a proposal could work: Individuals and corporations that chose to donate to eligible K-12 scholarship-granting organizations would be able to lower their tax bill by the amount of the donation. The size of the tax credit could be capped, and the scholarships funded by the donations could be targeted to low- and middle-income families.
Legislation could also potentially limit the total combined amount of tax credits allowed....
Lawrence J. Mone is president of the Manhattan Institute.