I was under the mistaken impression that corporations that donated to vouchers were able to double their savings but the reality is they get a one for one tax credit. I believed that if they donated fifty dollars to vouchers then they got fifty bucks off their tax bill too but it turns out the reality is it's just a wash, it's like they pay their tax bill to the voucher program instead of the state.
I was set set straight and apologize for getting it wrong.
However it made me wonder why corporations would give to vouchers especially since they do at the detriment of public schools, here are some of the answers I received.
It was pointed out to me that these businesses might benefit in other ways.
There are many ways to buy influence and vouchers is only one of them.
Quid pro quo, Chris. I donate to my legislator's cause, and he listens to what I want and tries to get it for me.
In lieu of Florida corporate income taxes, companies can pay StepUp instead. Say they remit $1 million to Step Up. I suspect the REAL savings could be a double deduction on the IRS federal tax bill. They could conceivably claim their $1 M "donation" (tax credit) twice, once as a "donation," the other time as "state taxes paid." So that could double their deduction on their federal returns (i.e., $2 million deduction for $1 M spent.) But they're only paying out once, i.e., what StepUp calls "donations" are actually diverted tax monies. They're also getting close up and personal contact with lawmakers at "donor" parties,
I would also like to point out that this money, most of which goes to religious institutions, where not as much as I thought still has to be made up for by citizens of Florida.
I was set set straight and apologize for getting it wrong.
However it made me wonder why corporations would give to vouchers especially since they do at the detriment of public schools, here are some of the answers I received.
It was pointed out to me that these businesses might benefit in other ways.
There are many ways to buy influence and vouchers is only one of them.
Quid pro quo, Chris. I donate to my legislator's cause, and he listens to what I want and tries to get it for me.
In lieu of Florida corporate income taxes, companies can pay StepUp instead. Say they remit $1 million to Step Up. I suspect the REAL savings could be a double deduction on the IRS federal tax bill. They could conceivably claim their $1 M "donation" (tax credit) twice, once as a "donation," the other time as "state taxes paid." So that could double their deduction on their federal returns (i.e., $2 million deduction for $1 M spent.) But they're only paying out once, i.e., what StepUp calls "donations" are actually diverted tax monies. They're also getting close up and personal contact with lawmakers at "donor" parties,
I would also like to point out that this money, most of which goes to religious institutions, where not as much as I thought still has to be made up for by citizens of Florida.
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