Commissioner of Education Penny Schwinn dropped a bombshell yesterday when she told a legislative committee that the value of a voucher under the state’s new education savings account program would be considered taxable income for the purpose of federal taxes. More from NewsChannel9 in Chattanooga:
Tennessee’s education commissioner says the state’s new school vouchers for private education will be considered federally taxable income for parents.
It was immediately pointed out that low-income families are the least likely to be able to absorb the burden of adding $7300 in taxable income reported to the IRS.
The announcement is the latest in a series of potential problems for Governor Bill Lee’s signature legislative initiative.
Just last week, it was revealed that the Department of Education is spending $2.5 million on a contract with a private firm to manage voucher payments. Not one cent of this money will go toward helping a student access a private school nor will it be paid to any private school. That’s just the administrative cost of managing the payments.
Oh, and there’s a serious effort to actually repeal the entire voucher scheme.
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