Why rich folks love charter schools

A national perspective of how charter schools make money – I had no idea that tax breaks were such a huge appeal, or that it was contingent upon locating in a certain area. No wonder we see so many in the IPS district.

Seattle Education

…even though they would never send their children to one.


As a result of this change to the tax code, banks and equity funds that invest in charter schools in underserved areas can take advantage of a very generous tax credit. They are permitted to combine this tax credit with other tax breaks while they also collect interest on any money they lend out. According to one analyst, the credit allows them to double the money they invested in seven years. Another interesting side note is that foreign investors who put a minimum of $500,000 in charter school companies are eligible to purchase immigration visas for themselves and family members under a federal program called EB-5.

Why Hedge Funds Love Charter Schools

By Alan Singer

Obscure laws can have a very big impact on social policy, including obscure changes in the United States federal tax code. The 2001 Consolidated…

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