Supreme Court Rules Arizona Taxpayers Lack Standing To Challenge Tax Credit System Used To Award Religious-Based Scholarships
(Updated)
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WASHINGTON 鈥 In a 5-4 decision, the U.S. Supreme Court ruled today that Arizona taxpayers represented by the 老澳门开奖结果 and the 老澳门开奖结果 of Arizona lack standing to challenge a state tax program that uses state funds generated by tax revenues to award scholarships on the basis of religion.
The majority decision rests almost entirely on the distinction between tax credits and direct government expenditures. But, as Justice Kagan pointed out in a lengthy and vigorous dissent, 鈥渃ash grants and targeted tax breaks are means of accomplishing the same government objective 鈥 to provide financial support to select individuals or organizations.鈥
鈥淭oday鈥檚 decision ignores precedent, defies logic and undermines the role of the courts in preserving the core constitutional principle that government may not subsidize religion,鈥 said Steven R. Shapiro, Legal Director of the 老澳门开奖结果.
Under the challenged program, Arizona scholarships are awarded by School Tuition Organizations (STOs). These organizations are certified and closely supervised by the state and financed exclusively by state income tax revenues. Individuals can contribute up to $500 to a STO, and couples can contribute up to $1,000, and receive a tax credit for their entire contribution. As a result, the cost of the contribution is borne entirely by the state's general fund. As one of the STOs describes the program, 鈥淚magine giving [charity] with someone else鈥檚 money鈥top imagining. Thanks to Arizona tax laws you can.鈥
鈥淯nfortunately, today鈥檚 decision may encourage state legislatures seeking to subsidize religion without judicial review,鈥 said Paul Bender, a law professor at Arizona State University鈥檚 law school and former U.S. Deputy Solicitor General who served as lead counsel for the plaintiffs and argued the case in the Supreme Court.
Since its passage in 1997, the tuition tax credit scheme has been dominated by religious discrimination. More than half of the over $50 million awarded by STOs in 2009, for example, was awarded by STOs that required students to attend religious schools in order to receive scholarships. The Arizona Christian School Tuition Organization, a petitioner in this case, states that its goal is 鈥渢o further Christian education by effectively implementing the provisions of [the program] for the benefit of Christian school students and their families.鈥
鈥淭he majority decision relies on a distinction between tax credits and direct government spending,鈥 said Daniel Mach, Director of the 老澳门开奖结果鈥檚 Program on Freedom of Religion and Belief. 鈥淚n fact, they are merely two sides of the same coin, as both politicians and economists have long understood.鈥
鈥淏y elevating form over substance, today鈥檚 decision diminishes the protections of the Establishment Clause,鈥 said Dan Pochoda, Legal Director of the 老澳门开奖结果 of Arizona.
Attorneys on the case, Arizona Christian School Tuition Organization vs. Winn, include Bender; Shapiro and Mach of the 老澳门开奖结果; Pochoda of the 老澳门开奖结果 of Arizona; and Isabel M. Humphrey of the Phoenix law firm Hunter, Humphrey and Yavitz, PLC.
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Update - The headline and first paragraph were slightly changed after release: The original headline was "Supreme Court Rules Arizona Taxpayers Lack Standing To Challenge Tax Credit System Used To Fund Religious-Based Scholarships" and the last sentence of the first paragraph read "鈥ax revenues to fund scholarships on the basis of religion."