The Benefits to Taxpayers from Increases in Students - RAND ...

More documents

Recommendations

Info

xii The Benefits to Taxpayers from Increases in Students’ Educational Attainment 7.2. Benefits to Taxpayers from Increasing Educational Attainment from Less Than High School to High School Graduate, U.S.-Born Men and Women .............................................................................. 77 7.3. Benefits to Taxpayers from Increasing Educational Attainment from High School Graduate to Some College, U.S.-Born Men and Women ...........78 7.4. Benefits to Taxpayers from Increasing Educational Attainment from Some College to College Graduate, U.S.-Born Men and Women..................79 7.5. Benefits to Taxpayers from Increasing Educational Attainment from High School Dropout to College Graduate, U.S.-Born Men and Women ...... 80 7.6. Net Benefits from Increased Educational Attainment Among U.S.-Born Hispanics .................................................................................82 7.7. Range of Percentage Reduction in Net Benefits to Taxpayers If the Effect of Increased Education Is Reduced 25 Percent........................................82 7.8. Smallest Estimated Effect of Increased Education on Net Benefits If Effect of Increased Education Is Reduced ....................................................83 B.1. Estimated Two-Part Model of 2002 Payroll Tax Payments........................ 92 B.2. Estimates of 2002 Federal and State Tax Payments................................. 94 C.1. Estimated Two-Part Model of 2002 Welfare Income (Temporary Assistance to Needy Families, General Assistance, Other).......... 98 C.2. Estimates of 2002 Subsidized Housing Participation............................... 99 C.3. Estimated Two-Part Model of 2002 Food Stamp Income........................ 101 C.4a. Estimated Two-Part Model of 2002 SSI Income................................... 102 C.4b. Estimated Two-Part Model of 2002 SSI Income................................... 103 C.5. Estimates of 2002 Medicaid Participation.......................................... 105 C.6. Estimates of 2002 Medicare Participation........................................... 106 C.7. Estimated Two-Part Model of 2002 Unemployment Insurance Income................................................................................... 108 C.8a. Estimated Two-Part Model of 2002 Social Security Income..................... 109 C.8b. Estimated Two-Part Model of 2002 Social Security Income..................... 110
Summary Policymakers in most states face a fundamental challenge—motivating taxpayers to provide the funds required to meet mounting educational needs. The level of education needed to succeed in labor markets and support economic growth is increasing rapidly. But, in most states, public schools from kindergarten through the university level already face budgetary limits, and meeting the demands of the future will be expensive. Taxpayers who do not have children in public school frequently question why they should contribute more to the support of educational institutions, or why those who stand to benefit the most—the students—should not pay more for their education. In this study, we explore the financial benefits that taxpayers enjoy as a result of increases in students’ education levels. We specifically address three research questions: How do increases in an individual’s educational attainment affect • tax revenues • program expenditures and revenues for a range of social support and insurance programs • spending for prisons and jails? We then subtract the costs of providing additional education to a student from the estimated effects of an increase in his or her education level on public spending and revenues to estimate the net benefit to taxpayers resulting from the increase in an individual’s education. Our findings indicate that an increase in a student’s educational attainment— say, completing high school rather than dropping out—results in substantial benefits to taxpayers over time. For example, if a U.S.-born, Hispanic man who would have dropped out of high school were to obtain a high school diploma instead, the discounted present value of the net benefits to taxpayers equals about $87,000 in 2002 dollars. The comparable result for a U.S.-born, Hispanic woman is almost as large, with net benefits equal to about $83,000 in 2002 dollars. The results for other racial and ethnic groups are similar. Our analysis focuses on the net benefits to taxpayers from increases in educational attainment. However, this is not a cost-benefit analysis of specific programs, since we xiii
Page 1 and 2: THE ARTS CHILD POLICY CIVIL JUSTICE
Page 3 and 4: The Benefits to Taxpayers from Incr
Page 5: Preface Meeting the educational dem
Page 8 and 9: vi The Benefits to Taxpayers from I
Page 11: Figures 3.1. Present Value of Lifet
Page 16 and 17: xiv The Benefits to Taxpayers from
Page 18 and 19: xvi The Benefits to Taxpayers from
Page 20 and 21: xviii The Benefits to Taxpayers fro
Page 22 and 23: xx The Benefits to Taxpayers from I
Page 25: Abbreviations ADA CPS EITC FTE GED
Page 28 and 29: 2 The Benefits to Taxpayers from In
Page 36 and 37: 10 The Benefits to Taxpayers from I
Page 39 and 40: Chapter Two Analytic Approach There
Page 41 and 42: Analytic Approach 15 effects of edu
Page 43 and 44: Analytic Approach 17 women employed
Page 45 and 46: Analytic Approach 19 State and Loca
Page 47 and 48: Analytic Approach 21 tion of educat
Page 49 and 50: Analytic Approach 23 The difference
Page 51 and 52: Analytic Approach 25 but a very sma
Page 53 and 54: Analytic Approach 27 1997 changes g
Page 55 and 56: Chapter Three Payments for Taxes an
Page 57 and 58: Payments for Taxes and Social Progr
Page 65 and 66:
Payments for Taxes and Social Progr
Page 67 and 68:
Chapter Four Spending on Social Sup
Page 69 and 70:
Spending on Social Support Programs
Page 71 and 72:
Page 73 and 74:
Page 75 and 76:
Page 77 and 78:
Page 79 and 80:
Page 82 and 83:
56 The Benefits to Taxpayers from I
Page 84 and 85:
Page 86 and 87:
Page 88 and 89:
Page 90 and 91:
Page 92 and 93:
Page 94 and 95:
Page 96 and 97:
Page 99 and 100:
Chapter Seven Educational Attainmen
Page 101 and 102:
Educational Attainment and Public R
Page 103 and 104:
Page 105 and 106:
Page 107 and 108:
Page 109 and 110:
Page 111 and 112:
Page 113 and 114:
Appendix A Data and Sources Data Th
Page 115 and 116:
Data and Sources 89 Program Benefit
Page 117 and 118:
Appendix B Estimating Tax Payments
Page 119 and 120:
Estimating Tax Payments 93 Federal
Page 121 and 122:
Appendix C Social Program Participa
Page 123 and 124:
Social Program Participation and Co
Page 125 and 126:
Page 127 and 128:
Page 129 and 130:
Page 131 and 132:
Page 133 and 134:
Page 135 and 136:
Page 137 and 138:
Appendix D Incarceration Cost Estim
Page 139 and 140:
References Aos, Steve, Roxanne Lieb
Page 141 and 142:
References 115 Krop, Richard, Steph
Page 143:
References 117 U.S. Department of J
show all

The Benefits to Taxpayers from Increases in Students - RAND ...

Create successful ePaper yourself

Delete template?

Save as template?