But critics underestimate the generosity and business sense of American entrepreneurs. Employers, too, are making after-school arrangements easier for parents. Legislators might also consider state-level universal tuition tax credits as an alternative to more government programs and increased spending. Unlike the traditional tuition tax credit, the universal credit can benefit children in families with little or no income tax liability by allowing any taxpayer to reduce his tax liability by paying a child's tuition. For example, friends or relatives could pay all or part of a student's tuition and receive an income tax credit.
Businesses can do the same.
In Arizona, nonprofit organizations have opened tuition clearinghouses that match tuition tax credit contributions from individual taxpayers with students from low-income families.