Liberty Insider

Arizona Tax Credit

Three Angels Broadcasting Network

Program transcript

Participants: Lincoln Steed (Host), Alan Reinach

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Series Code: LI

Program Code: LI000134


00:22 Welcome to the Liberty Insider.
00:25 This is the program that brings you discussions,
00:27 news, updates and all around valuable information
00:30 on Religious Liberty issues.
00:32 My name is Lincoln Steed, Editor of Liberty Magazine.
00:35 And my guest with me on the program is
00:37 Alan Reinach, Attorney Alan Reinach.
00:40 And you are with the Church State Counsel
00:43 over the West of the U.S.
00:45 Alan, I want to talk with you about some interesting things
00:48 that have not just legal ramifications,
00:50 but ramifications for Religious Liberty
00:52 and for people of faith.
00:54 Arizona...Arizona, people gonna think,
00:58 we gonna talk about immigration issues, right?
01:00 We may get to that in another program.
01:02 But there's a concern for state aid for churches
01:07 or an apparent state of churches through
01:09 not to watch your program
01:10 but something that's almost an equivalent.
01:13 Well, it's not an equivalent for more than a decade
01:16 Arizona has had a tax credit system.
01:18 Thirteen years out of it.
01:20 Going back to the late 1990s, and frankly you know
01:23 as a church-state separationist, I was very skeptical
01:27 of this program when it first came in.
01:31 The purpose of it was to help provide funding
01:35 for private and religious schools.
01:38 And at times, something like 80 percent of the money
01:42 has been used to assist tuition at religious schools.
01:46 It's a little bit lowered now,
01:48 I think it's closer to 60 percent.
01:50 Now, do you think that this was setup from the beginning
01:53 with the averting attention of funding or enabling attendance
01:58 at church schools or is this just sort of muffed out
02:01 of the original plan?
02:03 Well look, there's a lot of different motivations
02:07 when it comes to education and education financing.
02:12 There's a general perception which has some merit
02:15 that our public education system is deeply flawed
02:18 and that it needs competition
02:20 and that we ought to provide alternatives
02:25 to public education.
02:27 Now in Arizona, I've been amazed that
02:32 the state authorities that are designed to,
02:37 that are charged with analyzing the fiscal impact have said that
02:41 this tax credit program saves the state money.
02:47 Now of course even if it doesn't save state money that's almost
02:52 immaterial to the real issue that we discuss about it...
02:54 Well, in terms of the church state issues it's immaterial.
02:57 Can we go back? I want to get back further.
02:58 Let's explain how....
02:59 Let me go back further. All right.
03:02 I'd like our readers to know the basis of two things,
03:05 education, why do we have the education we now....now have?
03:10 And you know why...why are we trying to keep
03:12 church and state separate
03:14 or the funding issues separate, right?
03:17 Is not true, isn't it true that education was once
03:21 solely religious, yes, then even hundreds of years ago,
03:27 then it was the Jones that started educating,
03:29 and it was very late in the piece
03:31 that the state got into education.
03:33 And I think that's created some of the problem
03:35 that many people, so called Religious Right,
03:38 I know in a couple of decades ago.
03:40 They started to try to reverse the trend,
03:42 they were troubled where secular education was taking people,
03:46 they saw that it was training away from values and more toward
03:50 the dictates of the state,
03:51 and they're uncomfortable with it.
03:53 Okay, as far as separation of church and state,
03:56 why is this important?
03:57 I know it's Religious Liberty one on one,
04:00 but we need to explain to our listeners.
04:02 If you want to put this in historical contexts,
04:04 our, not just the industrial revolution but the modern,
04:09 social and economic system depends on universal education.
04:13 And that was something that the state came in
04:16 and brought to us. Right.
04:17 But the Supreme Court as cases began to be presented to it
04:22 concerning things like religion in the schools,
04:24 Bible reading, teaching of the Bible, etc,
04:27 the Supreme Court rightly said, look,
04:31 the public schools are for everybody and they should not
04:35 try to determine that one religion
04:39 should be thought as the truth.
04:41 That the public schools as being public have to be neutral
04:46 and even handed with respect to religion.
04:49 And so, those cases came down in the 60s.
04:52 The interesting thing is, it was not those decisions
04:56 that prompted the explosion of the Christian School Movement.
05:00 The thing that really motivated the Christian School Movement
05:03 was the attack on Bob Jones University.
05:06 And the race issue, when it became apparent,
05:11 that the public schools would be desegregated. Yeah.
05:16 Then there was an explosion of schools
05:19 that were private schools ostensibly
05:22 to re-segregate our education.
05:25 And this is very unfortunate where religious identity
05:28 was used to further, all right,
05:31 to perpetuate really a social and justice.
05:33 But of course Seventh-day Adventist
05:35 have operated the largest worldwide system
05:40 of religious schools in the Protestant world.
05:44 We have been committed to Christian education
05:47 from the beginning.
05:48 Yeah, but I really want to go back to basics,
05:52 because I think it's important here,
05:54 why is the separation of church and state so important?
05:56 And why is it so necessary to applied in the United States?
06:00 You and I know this it is given. Well, let's give you an example.
06:03 I served the Seventh-day Adventist church
06:05 in the western region including the State of Utah.
06:08 So, if you happen to, you know, Salt Lake has become something
06:12 of the back office of Silicon Valley.
06:15 So supposing you are very secular family and you get
06:18 transferred to Salt Lake City, and you put your kids
06:21 in the public school, and lo and behold
06:23 they get indoctrinated into Mormonism.
06:25 And you are a Protestant, Baptist, Adventist,
06:29 you know, whatever you are, secular.
06:31 Do you want the public schools having the freedom
06:35 to indoctrinate your children into a religion
06:38 that you don't describe to?
06:40 And it could be, you know, a more common or more socially
06:45 acceptable religion or not, it doesn't matter.
06:48 It's not the business of the state to make decisions
06:52 about what religion should be taught,
06:55 or what is religious truth?
06:56 In our system, it is fundamentally
06:59 the individual right and the family right to choose
07:04 a religion to teach our faith to our kids.
07:07 And in particularly since education is required,
07:10 unless you can find a private school,
07:11 your child has to go to that public school.
07:14 So, if...if a Muslim family sends their kids to the public
07:19 school, do they want them coming home Christian?
07:21 The Jewish family sends their kids, you know,
07:23 if a Protestant family sends their kids to a public school,
07:27 do they want them coming home Catholic or vise versa,
07:29 because the first battles over religion in public schools
07:33 were prompted by the use of the King James Bible
07:36 and they were riots because the Catholics objected.
07:39 The whole origin of the Catholic Parochial School system
07:42 in America is because the Protestant public schools
07:46 were unhospitable places,
07:50 inhospitable, for Catholic kids.
07:52 Yeah, and of course that itself was an abuse
07:56 of the Constitutional principle.
07:58 It's not always been acted upon as the Constitution says.
08:02 But the Constitution after much discussion by the framers
08:07 sets up requirement that the government not establish
08:11 a religion by funding or avert backing of this idea.
08:15 So, you know, those who attack...
08:17 And you also put your finger on what we believe is the reason
08:19 that came as a natural decision because there is a fragment
08:23 religious identity in the United States,
08:27 even though a great majority might be happy
08:30 with the certain religion pushed on them through a public school
08:33 in an area like Salt Lake City say.
08:35 We know the prejudice against movements historically,
08:38 and Protestants in another area would not like.
08:41 The state to be pushing
08:42 through the school that religion required.
08:44 If the public schools could push religion,
08:47 we would vulcanize.
08:48 And you'd have communities forming
08:50 around religious speakers, absolutely,
08:52 you'd choose your school district based on, there were,
08:55 many people would based on what kind of religion
08:57 was taught in...in the public school.
08:59 So...so it's not only required by the Constitution to keep
09:02 church and state separate, it's very illogical, I mean,
09:05 it's for the public good. Right.
09:07 Mean, the alternative is, we could adapt the system
09:09 like Iran and have, you know, Christian version of Sharia Law
09:14 and have, you know, some common denominator.
09:17 It may come, it may come one day,
09:19 but we'll try to stop it right.
09:21 And we need to legally challenge it,
09:23 all right, so explain then,
09:24 we've given a fair background discussion,
09:28 what really precipitated this thing in Arizona?
09:31 One of the key issues and one of roles of
09:35 the church state counsel is to monitor legislation
09:38 and to protect the independence and the freedom
09:42 of our religious schools.
09:44 Make sure that the government regulations
09:46 don't clip our wings when it comes to how our schools
09:50 carryout our religious message.
09:52 And one of the concerns that we have,
09:55 and why we have opposed for example vouchers
09:58 for so long is that the golden rule has never been repealed.
10:03 The version of the golden rule that is it says,
10:06 he who has the gold makes the rules.
10:09 And we know that if we take government funding directly,
10:13 we're likely to have regulation of the content
10:17 of our curriculum.
10:19 We're likely not to be able to select teachers
10:22 based on their being faithful representatives
10:26 of our religious teachings etc.
10:29 Now Liberty Magazine over the years,
10:30 well, before I became editor, had many, many articles arguing
10:33 against vouchers, it's seems a dangerous policy
10:38 and of course clearly compromises
10:40 the first amendment intention.
10:42 Now the tax credit system in Arizona is actually
10:46 a pretty good compromise, okay,
10:49 from a pure separation standpoint, you know,
10:53 at least from a theoretical standpoint,
10:56 it auto violate the separation of church and state
10:58 because it's a tax benefit that flows to religious schools.
11:03 But it's a nice compromise because it really does not run
11:07 the risk of government regulation of those schools.
11:11 Let me just explain for a minute, how it works?
11:13 Okay, because under tax policy, you cannot get a tax benefit
11:19 if you for example give a contribution
11:22 for the benefit of your own kid, okay.
11:25 So you can't just pay some tuition,
11:29 and for your own child to go to a private or religious school
11:32 and then get a tax credit for that.
11:34 What you do, do,
11:35 is you contribute to a fund,
11:42 our church has setup a separate fund, our scholarship fund.
11:46 It's not tax deductible, it's from your tax, right?
11:49 Okay, you can contribute up to a $1000 per person
11:55 and then to the scholarship fund.
11:58 And the scholarship fund will then allocate
12:00 the moneys to the students.
12:02 You can't allocate it to your own students
12:04 but you can give for somebody else's student.
12:09 And then you'll get a credit on your state taxes
12:14 up to the amount that you pay and stay.
12:16 If you're not....if you're not earning enough to pay a $1000
12:21 in state income tax then you can't get the $1000 credit.
12:25 Now, if you participated in this and if your child goes
12:29 to say a church school, they will automatically be able
12:33 to get the scholarship there on.
12:37 I don't know that it's automatic but as a practical matter....
12:41 a reasonable expectation, it's not an exception.
12:46 This program has caused a lot of money to flow into
12:52 all of the religious schools, and certainly
12:54 the Adventists and the Catholics having the larger systems
12:57 have benefited tremendously.
12:59 Okay, we'll discuss this after the break.
13:02 So stay with us and we'll be back talking about
13:04 the Arizona schools subsidy case
13:08 that's not vouchers but maybe
13:10 has some of the same issues applied.
13:21 One-hundred years, a long time to do anything
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15:03 in a world bound together by the God ordained bonds
15:07 of religious freedom.
15:19 Welcome back to the Liberty Insider
15:21 before the break with guest Alan Reinach.
15:23 I was talking about the Arizona tax credit case
15:27 and hopefully we're explaining this adequately.
15:29 But I do believe that before we go further we maybe
15:32 should talk little bit about what vouchers are because
15:34 this is compared to vouchers.
15:37 And vouchers are been around a long time
15:38 and we argued in Liberty Magazine,
15:41 and of course others too have argued against it that
15:44 it violates the separation of church and state
15:46 and it's direct funding of church schools by the state.
15:50 And I think it's helpful to see why our tax credit system
15:54 is actually an improvement over a voucher system.
15:57 In a voucher system, the state will give a coupon,
16:02 a voucher to a parent.
16:05 The parent can choose any school that has been approved by
16:10 the state to receive these vouchers.
16:13 And that's the key because in order for the school
16:16 to be approved it has to meet the requirements such as
16:19 in...in the existing programs
16:21 it cannot hire only Christian teachers.
16:24 It can't discriminate on the bases of religion.
16:26 This is subject to state laws on discrimination and so on.
16:30 And once that voucher is handed over
16:31 then the money flows directly to the school.
16:33 The parent gives a coupon to the school,
16:35 gives a voucher to the school, the school turns into the state,
16:39 and the money flows directly from the state to the school.
16:42 And one thing we have to understand,
16:44 in this country there has to be accountability
16:48 for the use of public funds.
16:49 So the state has to hold this religious school accountable
16:54 and there's a necessity of regulating the school.
16:59 So in a voucher system, it really transforms
17:03 the private religious school into a public school,
17:06 that's the bottom line.
17:08 We loose the independence of our religious schools
17:12 if we start taking voucher funds.
17:14 Now how does this differ then, this tax credit?
17:17 Okay, the tax credit differs because there is no money
17:21 flowing directly from the state to the religious school.
17:25 And I think the Supreme Court was on the right track
17:28 when it analyzed it at least in one particular.
17:33 In the tax credit system, the parent or any individual
17:38 can give a donation to the scholarship fund.
17:44 And those scholarship funds are then used presumably
17:48 set up for a particular... particular schools
17:52 or particular denominations to assist with
17:55 needy children at those schools.
17:58 And so the money... So as their child,
17:59 when they go there, but not automatic...not necessarily
18:02 right. The Supreme Court when it reviewed the case got it right,
18:06 and said look, this is not about public funds
18:09 going to the religious schools.
18:12 Apparent these are private funds
18:14 just because parents and others are making donations
18:18 to scholarship funds and getting a tax credit for it,
18:21 that doesn't transform those gifts
18:23 into the giving of public funding.
18:26 But a normal donation that would be the money
18:29 that would not be taxed, the donation money
18:32 would not be taxed.
18:34 You'd get a tax deduction for it,
18:37 and here you get a dollar for dollar credit.
18:40 This is a little bit different.
18:41 So look, what the separationist argue is that it's just
18:46 a subterfuge, that the state money goes from the state
18:50 to the donor to the taxpayer, from the taxpayer to the school
18:56 and that there is a straight line
18:57 going directly to the school.
18:59 And it should be analyzed as government funding of religion.
19:03 And there is a logic to that, and that's why I said
19:06 at the outset of the program from a strict separationist
19:11 viewpoint the program is problematic.
19:14 But as a compromise if you will,
19:18 as a practical compromise,
19:20 it doesn't require the same kind of intrusive government
19:25 regulation, an oversight of the schools.
19:28 And what it really is, is the status is big differential
19:32 to someone that's giving to the religious institution,
19:34 right, because the church is a tax free.
19:37 Church donations are, you pay no tax on them.
19:41 So this is really not another university that mindset that
19:45 we've had where we begin. And in terms of education policy.
19:47 I mean, I was surprised honestly,
19:49 I figured that the program would be a fiscal drain on the state
19:54 because and often lot of the kids in the private schools,
19:58 religious schools that are benefiting would be kids
20:01 that are already there and you'd be taking money out
20:04 of public education and moving it to private education.
20:08 But what the Arizona state authorities have been saying
20:12 for years is, but yes, there are, because they are kids
20:16 now moving from public schools to private schools.
20:19 Then they are saving money on the public schools
20:22 and the saving are more than enough
20:24 to offset what's being spent.
20:26 Although the complication that I should throw in,
20:29 this is a state program, this is a state program.
20:33 But aren't most educational taxes at the local level?
20:38 Well, it's matter of faith.
20:39 That out of your...out of your property tax?
20:42 In most states that's how it works, right.
20:45 But in this case income tax is as well.
20:47 Yes, but it's only the part of the funding of the state school?
20:51 Right. State school seems to me is a very local
20:55 from the property taxes, perhaps some state government
20:58 involvement, and then Federal.
20:59 But the Federal government is not the primary....
21:01 No, Federal government doesn't fund our local public schools.
21:04 No, but there's Federal money that make the way into it.
21:08 For certain kinds of programs. Absolutely yeah. Yeah.
21:10 But I do believe that most people they reduce papers
21:14 and listen to the TV and they get the idea there's
21:16 the Federal government involved in these programs.
21:18 No, this is a completely state program,
21:22 it has been copied in several states,
21:25 I can't give you chapter and verse on which ones
21:28 because you know we work in the West,
21:30 and we've been following this Arizona situation.
21:33 But, it...it's working is the thing,
21:35 it's working very well, it has helped certainly a lot
21:39 of our own Seventh-day Adventist schools and young people.
21:43 If the biggest flaw frankly in the program is that
21:48 it does tend to make the school systems,
21:51 the private schools systems become dependent
21:54 upon these income streams.
21:56 And if policy shifted, and the program was terminated
22:01 that would have a devastating impact on the schools.
22:04 And this is something that in our own Adventist church
22:07 policies have always said, we should avoid becoming
22:10 dependent upon any sort of public funding.
22:13 But still it would be difficult to say,
22:16 don't take advantage of government's own stated policy.
22:20 So as long as the policy is there,
22:22 there's nothing immoral or inherently, you know,
22:26 a moral taint to participate in this.
22:29 And this is what I think the Liberty Magazine,
22:31 we sometimes not able to say, because we're dealing with
22:34 Constitution and historic arguments.
22:36 But the Seventh-day Adventist know themselves now
22:39 and I hope our department,
22:40 Religious Liberty has explained to them.
22:42 It's not wrong, it's no great moral wrong
22:46 for as Ellen White once said. pioneer, leader of Adventist,
22:50 she says, you know, God still moves upon
22:52 kings and princess to give money. Right, right.
22:55 So the money is not, it's not tainted money.
22:57 It may compromise you and that's where we are concerned
23:00 with this whole dynamic.
23:03 We don't want to be compromised where the state either
23:05 is then able to exert some control
23:07 or that we are comprised by you, the nipple of the....right.
23:13 I'm going to mix a metaphor like...like most preachers,
23:16 I was going to say, the nipple of the public purse.
23:19 Well, I think a lot of can be that way,
23:22 Seventh-day Adventist have historically being champions
23:25 of the separation of church and state.
23:26 And we have been battling against provocate
23:30 it for so long, but many church members
23:32 are confused because our policies are actually quite
23:37 pragmatic and we want to protect the freedom
23:40 of our schools to be Christian schools.
23:44 But we've always said following the counsel of Ellen White,
23:49 that if there are funding schemes that are legal
23:53 and that do not make us become overly dependent
23:56 on public funding that it's perfectly okay
24:00 to participate in.
24:01 Absolutely, and that's what I was trying to get you to say.
24:04 You mentioned the Supreme Court before,
24:06 this is....this case came before...
24:07 This case went through the Supreme Court earlier this year.
24:09 And we know from their discussion,
24:11 but how did they disposed this?
24:13 Well, there's actually there's a dark side to their decision,
24:15 they didn't get to the merits of the case,
24:17 they didn't say the tax credit program is okay,
24:20 or it's not okay, what they said is,
24:23 that the tax payers who file the challenge have no right.
24:27 The legal term is standing, they have no right,
24:29 no standing to come into the court
24:31 and challenge the program, because it doesn't involve
24:36 the use of taxpayer funding.
24:37 And I read the transcript one point,
24:39 I know Justice Kagan just sniffed it that,
24:42 she thought that was... that was ridiculous.
24:44 Well, it's very disappointing that they didn't get to that.
24:47 Now, she was a little negative on this,
24:49 but what I think she recognized is a couple of times lately
24:53 the Supreme Court have used that as the couplet on the challenge
24:57 to the faith based initiative, same thing no standing.
24:59 And I have a fear that this is gonna be a standard argument
25:03 on religious cases to just to take if off the table.
25:06 And the government is free to proceed on whatever.
25:09 There's an ancient legal principle,
25:12 that there is no right without a remedy,
25:15 there's no right without a remedy.
25:17 The Supreme Court is increasingly saying that
25:21 there's no remedy for violations of the establishment clause
25:26 for violations of the separation of church and state.
25:29 If there is no remedy, if you can't go into court,
25:31 and have the court decide on the merits
25:34 the substance of the claim.
25:36 Then the establishment clause for all intense
25:38 and purposes doesn't exist. Okay.
25:40 And that's very problematic.
25:42 And it seems to me we're all taxpayers are the sponsors
25:46 of the government it's acting on our behalf.
25:48 So to say, that just because it doesn't concern me particularly
25:52 as this particular taxpayer but another taxpayer issue
25:55 is to dodge the issue of the government.
25:57 You know, there's an awful lot of cases,
26:00 that involve the establishment clause,
26:02 and some of them like challenges to under God in the pledge,
26:05 we may think that these are silly.
26:08 But we still want the courts to be able to decide
26:12 on the merits, thumbs up, thumbs down.
26:15 What does the establishment clause mean,
26:17 how much religion is appropriate in public life
26:21 and where religion, where the state needs
26:24 to be even handed and neutral with respect to religion.
26:28 It's very important that we have a vigorous
26:30 establishment clause, and that the court provide guidance.
26:33 What the Supreme Court is doing and saying,
26:36 essentially the establishment clause is irrelevant,
26:39 we are undermining it, and we won't get
26:42 to the merits of these cases.
26:43 And so we're left with decreasing vitality
26:48 to the wall of separation.
26:51 There's an old saying about the hand that rocks
26:54 the cradle determining the direction of the nation.
26:57 It's no accident that education policy
27:00 is so vigorously debated because that's determining
27:04 the future of society.
27:06 When we talk about church state issues and education,
27:10 we must concern usually to ensure that the state doesn't
27:14 dictate or control religious instruction the young people.
27:19 For a long time an undercover way of subverting
27:23 a separation of church and state and education
27:26 has been through introduce something like vouchers
27:29 or a subterfuge whereby government money can be passed
27:32 through church school but not so obvious
27:35 that is seen as direct funding.
27:38 Vouchers have been one way to do this,
27:42 a tax deduction is another, but whatever the mechanism,
27:46 we must realize that the principle is what
27:48 we are arguing with that.
27:49 We do not want the government controlling education.
27:52 We do want religious instruction to be under the hand
27:56 of the cradle if you like in the home.
27:59 We do want religious values, but we do not want need
28:03 or can't risk the state being the one imparting them.
28:08 For Liberty Insider, this is Lincoln Steed.


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