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

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The research in this report was produced within RAND Education, a unit of the RAND Corporation, with support from the William and Flora Hewlett Foundation. Library of Congress Cataloging-in-Publication Data Carroll, Stephen J., 1940– The benefits to taxpayers from increases in students’ educational attainment / Stephen J. Carroll, Emre Erkut. p. cm. Includes bibliographical references. ISBN 978-0-8330-4742-7 (pbk. : alk. paper) 1. Public schools—United States—Finance. 2. Education—United States— Finance. 3. Income tax—United States. I. Erkut, Emre. II. Title. LB2825.C315 2009 379.1'10973—dc22 2009024776 The RAND Corporation is a nonprofit research organization providing objective analysis and effective solutions that address the challenges facing the public and private sectors around the world. RAND’s publications do not necessarily reflect the opinions of its research clients and sponsors. R® is a registered trademark. © Copyright 2009 RAND Corporation Permission is given to duplicate this document for personal use only, as long as it is unaltered and complete. Copies may not be duplicated for commercial purposes. Unauthorized posting of RAND documents to a non-RAND Web site is prohibited. RAND documents are protected under copyright law. For information on reprint and linking permissions, please visit the RAND permissions page (http://www.rand.org/ publications/permissions.html). Published 2009 by the RAND Corporation 1776 Main Street, P.O. Box 2138, Santa Monica, CA 90407-2138 1200 South Hayes Street, Arlington, VA 22202-5050 4570 Fifth Avenue, Suite 600, Pittsburgh, PA 15213-2665 RAND URL: http://www.rand.org To order RAND documents or to obtain additional information, contact Distribution Services: Telephone: (310) 451-7002; Fax: (310) 451-6915; Email: order@rand.org
Preface Meeting the educational demands of the future will be expensive; however, in most states, public schools from kindergarten through the university level already experience budgetary challenges. Policymakers face a fundamental challenge—motivating taxpayers to provide the funds needed to meet mounting education needs. This report examines the financial benefits that taxpayers realize when students’ educational attainment is increased. We find that the benefits to taxpayers from increases in students’ educational attainment are very high. Regardless of a student’s gender or race/ethnicity, raising his or her level of education leads, on average, to substantially increased payments into, and reduced demands on, the public budget. We consider the cost of providing additional education to students, although we do not explore the question of what it would cost to motivate students to stay longer in school. Our analysis indicates that taxpayers accrue benefits from programs and policies that succeed in raising students’ education levels, and those benefits are entirely separate from the benefits that the students themselves gain through increased education. Accordingly, taxpayers, including those who do not have children in school, have a stake in developing programs and policies that effectively and efficiently increase education levels. This report’s findings should be of interest to a broad range of policymakers, researchers, administrators, teachers, and parents. This research was conducted within RAND Education, a division of the RAND Corporation, with support from the William and Flora Hewlett Foundation. iii
Page 1 and 2: THE ARTS CHILD POLICY CIVIL JUSTICE
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Chapter Three Payments for Taxes an
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Payments for Taxes and Social Progr
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Chapter Seven Educational Attainmen
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Educational Attainment and Public R
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Appendix A Data and Sources Data Th
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Data and Sources 89 Program Benefit
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Appendix B Estimating Tax Payments
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Estimating Tax Payments 93 Federal
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Social Program Participation and Co
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Appendix D Incarceration Cost Estim
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References Aos, Steve, Roxanne Lieb
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References 115 Krop, Richard, Steph
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References 117 U.S. Department of J
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