In the face of such evidence, one would expect the government’s performance in the field of education to be questioned, at the least, [but] the growing failures of the educational establishment are followed by the appropriation of larger and larger sums. There is, however, a practical alternative: tax credits for education.
The essentials of the idea (in my version) are as follows: an individual citizen would be given tax credits for the money he spends on education, whether his own education, his children’s, or any person’s he wants to put through a bona fide school of his own choice (including primary, secondary, and higher education).
Rand’s support for credits is interesting for a number of reasons, not least the fact that she explicitly endorses credits, not vouchers. I’ve had numerous and largely fruitless arguments over which policy is most “free‐market” or least distorting. To me it is obvious that credits are the most “free‐market” education reform. Now I can skip the arguments and yell, “Ayn Rand!”
Rand’s essay also highlights the fact that education tax credits were, throughout the 1970s and 1980s, the most prominent private school policy on the scene. Federal tax credits were a live issue under Nixon and Carter. Ronald Reagan and the Republican Party gave strong and explicit support for education tax credits throughout the 1980’s – with tax credits, but not vouchers, mentioned specifically in the Republican Party platforms of 1980, 1984, and 1988.
The largely forgotten history of education tax credits … interesting …