A Boost for Private Schools

Reagan offers tax credits

Ronald Reagan could not have picked a better audience (4,200 members of the National Catholic Educational Association), or a more fitting date (April 15, the deadline for filing tax returns). His speech was chock-full of applause lines, and he hit nearly every one on cue. "I believe that working Americans are overtaxed and underappreciated." Cheers and applause. "I have come to Chicago to propose another tax bill that will allow them to keep a little more of their own money. I have come to propose a tuition tax credit for parents . . ." At this point, his listeners rose to their feet, roaring their support and drowning out his words. After the clamor died down, Reagan finished his sentence: "This tax credit will be for parents who bear the double burden of public and private school costs."

It was a gratifying reception for a President who has not heard a lot of applause lately. But elsewhere his plan is sure to provoke as many boos as cheers. Republican Bob Packwood of Oregon and Democrat Daniel Moynihan of New York introduced a tuition tax credit bill in the Senate in 1977, and a bitter debate has been raging ever since. Indeed, even as Reagan basked in last week's cheers, opponents of the program were mobilizing.

Under Reagan's proposal, families with adjusted gross annual incomes of $50,000 or less would be allowed to take a tax credit up to $ 100 in 1983 for each child in private elementary or secondary schools, up to $300 in 1984, up to $500 thereafter. Families earning between $50,000 and $75,000 would be eligible for partial credits. Declared Reagan: "We are offering help to the inner-city child who faces a world of drugs and crime, the child with special needs, and to families who still believe the Lord's Prayer will do them less harm in the schoolroom than good."

Opponents claim that credits would violate the constitutional principle of separation of church and state, since 80% of private school students are in parochial schools. They also contend that the legislation would damage the public school system by encouraging parents to put their children in private schools; an estimated 5 million students are enrolled in private schools, compared with 40 million in public schools, and that ratio has remained fairly steady over the past 15 years. Moreover, the tax credits would drain away funds needed to improve public education. Says Albert Shanker, president of the American Federation of Teachers: "There is no more reason to pay for private education than there is to pay for a private swimming pool for those who do not use public facilities."

Supporters contend that the plan would benefit those who most need help.

According to Gary Jones, a deputy under secretary of the Department of Education, 54% of the families sending children to private schools make less than $25,000 a year. Trying to blunt the church-state issue, Reagan stressed that the tax credits would go not to parochial schools but to the parents themselves. The President also emphasized that no credits would go to families that send their children to racially discriminatory schools. Finally, he argued that strengthening private schools would force public schools to improve their programs.