AZ tax credits benefit those that use them
August 28, 2015
Wealthy families and districts throughout Arizona have been known to use tax credits more frequently than the less fortunate to save money on their child’s extracurricular expenses and give their kids more options for extracurricular activities related to their school.
Tax credits are a way one can pay fees for activities outside of the classroom, such as sports, clubs, or bands. Each tax credit user can direct up to $200 for a single person or $400 for a married couple of their annual tax payment towards a student’s benefit instead of it going to the general state tax fund.
According to the Arizona Republic, of all the southeast Valley high schools, Perry is ranked as number nine to direct the most tax credits to our students. Perry spent $277,427 tax credit dollars in 2014, an average of about $88 per person, while 10 percent of students qualified for a free and reduced price lunch.
To determine which families were more in need, the number of students who qualified for free and reduced price lunches in each school were considered the less fortunate. Throughout Arizona, people who are struggling financially spend exceptionally less on tax credits.
Some believe those with low income spend less on tax credits because they cannot afford it. Principal Dan Serrano said, “Well I think schools that… are in an area where people struggle financially, it’s not as easy to give $400 to a school as it is here.”
Many families cannot afford to part with $400 for a year. They live from paycheck to paycheck. Although they would get that money back in tax returns after they pay their taxes on Tax Day, there are families who need that money, and they need it right as they receive it.
Through tax credits, the abundant can save money by sending a fraction of their taxes directly to the students, however, they do not make a profit from the usage of this system.
If the less fortunate could afford giving $400 in tax credits and could survive without that money until Tax Day, April 15, it would benefit them more than the wealthy because they can take out a larger dent of their smaller total of yearly taxes in comparison to the total taxes of the affluent.