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The creation of the public school system is exactly the sort of "meandering around the law and creating loopholes" you complain about. Gee. We're not *actually* infringing on the right of a parent to send their child to a school that teaches religion, but we're going to take money from them in the form of taxes, and then spend it on a "free" education for them, but one that can't teach their religion.
Public school should be
mandatory. You, as a citizen of the country are part of this country, no matter how much you may try to pretend that you can try living alone and isolated in a little world of your own and subsisting on your vegetable garden, you can't. The ideal of liberty simply isn't possible, and the best we can come up with is something like mills harm principle to justify our infringements of liberty.
Point though, is that you, as a citizen have to the individuals whom have collectively raised you (society, NOT your parents) an obligation to participate in that society, and that means conforming to the general quality of knowledge within that society.
We don't have to outlaw private schools, rather they should be an optional addition to a standard state sponsored curriculum, the curriculum of which of course is decided by the collective democratic process of the people.