Monday, June 21, 2010

Should We Tax College Attendance

A couple of economists look at the rising income gap and see a growing payoff to attending college. At the same time, we're becoming more progressive in taxing income. They then raise a provocative question:

For many, the solution to an increase in inequality is to make the tax structure more progressive—raise taxes on high-income households and reduce taxes on low-income households. While this may sound sensible, it is not. Would these same individuals advocate a tax on going to college and a subsidy for dropping out of high school in response to the increased importance of education?

Food for thought. As they say, read the whole thing.

HT: Carpe Diem

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