The Leaflet: Back to School on Higher Ed Reform

Published September 25, 2014

Back to School on Higher Ed Reform

Education issues always get a boost in media coverage when the new school year begins. But that boost is intensified even more when it’s also an election year. With student loans and college affordability a top concern for young voters, state legislators made 2014 an active year for higher-education reform.

State governments already provide most of the aid to institutions, and several states “increased appropriations” to institutions of higher learning this year, according to the National Conference for State Legislatures. In The Heartland Institute’s Ten Principles of Higher Education Reform, Ohio University economist Richard Vedder and analyst Matthew Denhart say higher-education institutions need less funding, not more.

They wrote, “Ending government subsidies to higher education and removing tax breaks for third-party subsidization would more directly align the costs of higher education to the benefits of those who attend.”

Those who argue that education is a “public good” worthy of state subsidies should note empirical evidence fails to prove that’s the case. The claim that third-party payments have led to more equal opportunity for higher education also lacks evidence.

U.S. higher education is still relatively a free market. States should therefore resist distorting these mechanisms by increasing subsidies. They should instead seek to phase them out. If college is such a good investment, as subsidy proponents claim, why is it a problem if students pay for it themselves?

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“Most of us are familiar with the fiasco centered around President Obama’s false pledge that ‘if you like your health care plan, you can keep it.'” I hadn’t realized that this broken promise didn’t affect just to old plans that were cancelled, but will also impact plans that are currently available on the Obamacare exchanges as well.” Read more

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Research & Commentary: The Clean Water Act
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Education
Research & Commentary: Common Core English Language Arts Standards
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Budget & Tax
Research & Commentary: Mississippi Franchise Tax Repeal
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The September issue of Budget & Tax News reports on U.S. Sen. Dick Durbin‘s efforts to punish companies that engage in “inversions,” in which companies reincorporate in foreign countries with lower corporate income taxes and a territorial tax system instead of the worldwide tax system imposed by the United States. “It’s so irresponsible, Durbin’s position,” said Chris Edwards, director of tax policy at the Cato Institute. “We have a horrible corporate tax code … and he complains when corporations properly try to escape it.”
 
 

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Environment & Climate News