Taxes and School Fees

Reportedly, in England they are about to start levying taxes on non-public school fees. While I have no views on taxes on school fees, or on whether school fees are appropriately targeted as "value-added", I do take issue with a couple of the points which have been raised in the accompanying discussion. And full disclosure, none of the states in which I have worked have taxed school fees, although as far as I know those schools still paid sales and transaction taxes on whatever they bought.

My first beef is that most non-public schools are in fact fairly modest, often parochial and mostly attended by people without much extra cash lying around. Any fee increase, especially an 18% tax, will be unaffordable for these families so they will leave and schools will close. Or if they have more than one child, which one stays and who goes and how will two systems and two calendars work out?  

Most of these families depend on financial aid which is already fully allocated, so an increase in fees (ie fees plus tax) will lead to less financial aid to go around, or to a greater family contribution being required. Again, families will leave and schools will close. 

By the way. it is unclear whether the tax is to be applied to the full fees or to the family contribution. If the former, this will almost certainly be passed on with the same result. Even if the latter, the same result is likely,

A small number of these schools can absorb the tax, although for how long remains to be seen, and a small number serve families who can pay it. However, schools typically look at 5 - 10% year-on-year increases just for salaries, utilities and maintenance so the future of this double whammy does not look good.

Another gripe is the claim that this will produce zillions of pounds which will then go into public education. I do not see this. The exchequer will have more money, yes. However, I have argued before that there is no evidence that increased public funds leads to increased public education funding. Experience suggests there is little to no relationship.

And another thing. Should hundreds or thousands or tens of thousands of students leave non-public education, where would they go? Public schools are already full or even bursting. Facilities are lacking, desks and chairs are missing and teachers are not in place. How would the public sector manage these numbers?

And as a corollary, when I was in the independent sector, almost every parent I met was looking for provision for their child which did not exist in the public schools. Music, sports, science ... most frequently, academically challenging programs for their smart but a little odd progeny who were being bullied in the local public elementary. These children going back into the system would not mean that the reasons for their leaving had been addressed. 

A large number of these students will likely then be "homeschooled" and that raises a whole set of other questions.

I don't know if tax on fees is wise, but I do wish discussions would be more substantive and that politicians would more deeply explore the effects of what they do. What happens in the UK will be informative, and if things work out, guess what will likely be coming to a non-public school near you.

**Please leave comments and queries below.**