The US public school system is a reflection of mass segregation based on income. As the wage gap widens so does the quality of education.
You can allow institutions that provide religious education w/o letting them serve in lieu of public secular edu.
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And taxing a payment for service (tuition) is not a limitation on 1st amend. This isn't even a loophole; ...
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under what authority would the federal government levy such a tax?
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Like pooling funds, it would probably have to be done at state level under current US system.
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Perhaps federal government could deny federal funding to states that don't institute such a tax, though.
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but you said "ban private schools", which would have 1st amendment, among other, implications
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It's what I'd advocate for if we were designing a completely new social contract without legacy constraints, not what works in US.
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