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One of the biggest contributors to rising disparity in America today is the widening earnings gap between workers with college degrees and those without. Higher education remains a good investment, even though some new grads are currently struggling to get jobs. Over the past two decades, lawmakers have progressively asked the tax code to direct all manner of social and economic objectives (e.g. home buying, adoption, attending college, trading in a clunker for a newer car, etc.). In regards to federal assistance for higher education expenses, tax credits and deductions are relatively new.
Lawmakers have increasingly used tax credits to aid students in covering the cost of college. From 1997 [3], the first year these credits … Read the rest