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Abstract

One of the largest expenditures of state and local governments in the USA,1 and of various governments at all levels In other countries, is for the provision of education. In the USA, states provide a free government (public school) education to students for the first twelve years, and subsidize tuition at state universities thereafter. As a result, government education has become a near monopoly,2 especially at the primary and secondary level because privately provided education finds it difficult to compete on price. Where private education exists, it can compete only because of nonprice advantages.

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NOTES

  1. More than one-third of state and local government expenditures are for education. Roger LeRoy Miller, (1994). Economics Today: The Micro View, eighth edition. New York: Harper Collins College Publishers, 1994, p. 116.

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  12. The argument has been made that taxes are not really coercive because “the people” gave their consent to be taxed. Space does not permit a discussion of this argument, but it has been discussed — and refuted — elsewhere. See Robert W. McGee, Is Tax Evasion Unethical? University of Kansas Law Review, 42: 411–435 (1994); Robert W. McGee, Principles of Taxation for Emerging Economies: Lessons from the U.S. Experience, Dickinson Journal of International Law, 14:29-93 (1993).

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  13. Publicly traded corporations could be in breach of their fiduciary duty to their shareholders if they donated money for things that do not benefit the corporation but we will not go into that issue here. One of the classic articles on this point was written by Milton Friedman. See Milton Friedman, The Social Responsibility of Business, The New York Times Magazine, September 13, 1970, pp. 33, 122-126, reprinted in many places, including Kurt R. Leube, editor, The Essence of Friedman, Stanford: Hoover Institution Press, 1987, pp. 36-42. Also see Henry G. Manne and Henry C. Wallich, The Modem Corporation and Social Responsibility, Washington, DC: American Enterprise Institute, 1972.

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  19. Some people think that utilitarian solutions are moral solutions. This issue is discussed elsewhere in this book, so we will not discuss it again here.

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© 2004 Springer Science+Business Media New York

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McGee, R.W. (2004). Financing Education. In: The Philosophy of Taxation and Public Finance. Springer, Boston, MA. https://doi.org/10.1007/978-1-4419-9140-9_16

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  • DOI: https://doi.org/10.1007/978-1-4419-9140-9_16

  • Publisher Name: Springer, Boston, MA

  • Print ISBN: 978-1-4419-9139-3

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