Mueller v. Allen - Deducting Private School Expenses

Should taxpayers be allowed to deduct from their state income taxes expenses related to sending their children to religious schools? Proponents of the measure argue that these tax deductions are not religious in nature because they support a secular cause, namely the advancement of education. Further, they argue that these deductions give poorer students the opportunity to attend private schools.

Opponents argue that these deductions support religious activity and thus breach the Establishment Clause of First Amendment. In addition, they feel that if more students opt to leave public schools it could have the ill effect of eroding the public educational system. Finally, opponents argue that a great deal of state revenue would be lost with these deductions.