Tax credit programs allow those applicable for a credit to subtract the value from their annual tax payment, or claim it as a deduction. So if you were required to pay $5,000 in taxes this year and you received the $4,000 tax credit that Obama proposes for students, you would only have to pay $1,000 in taxes. Many politicians, including Obama, favor providing tax credits to college students in exchange for public service. However, some college administrators state that tax credit programs force an increase in overall student tuition.
Obama wants to increase tax credits, McCain states he wants to simplify them, but by simplify, does he mean eliminate? Find out in Part 2 of Mason Votes series on College Affordability.