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

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40 The Benefits to Taxpayers from Increases in Students’ Educational Attainment degree or more rather than completing only some college has the largest impact on tax payments, followed by graduating high school rather than dropping out, and finally completing some college rather than only graduating high school. The estimates presented for both single-level increments in education (Figures 3.1 and 3.2) and multilevel increments (Table 3.5) clearly indicate that increases in the education level of individuals in every population subgroup result in substantial benefits to taxpayers, due to increases in the present value of the increased tax payments that result from increases in education.
Chapter Four Spending on Social Support Programs The United States has built an extensive safety net for the poor and needy. Increases in educational attainment result in increases in earnings that, in turn, result in a reduced likelihood that a person will draw on this safety net and a decrease in the amount of benefit a person will receive from most social programs if he or she participates. In this chapter, we estimate the effects of increased educational attainment on social support program spending in each of the eight largest social support and insurance programs for which sufficient data on program participation and spending are available. Appendix C presents the empirical analyses used to estimate the effects of increased educational attainment on participation in social programs and the resulting costs. 1 Background The U.S. social support and insurance system includes some 400 programs in two dozen federal departments and agencies. Some programs are administered jointly by the federal and state governments. Social support programs can be broadly divided into two categories. The first category consists of social support programs that provide cash and noncash benefits to members of low-income households in programs that provide direct income support, medical support, food and nutrition, and housing. Major programs of this type include the Temporary Assistance for Needy Families, Earned Income Tax Credit, housing subsidies, the Supplemental Nutrition Assistance Program (food stamps), SSI, and Medicaid. The second category consists of social insurance programs that replace the lost income of people who cannot work because of old age, disability, severance, etc. Major programs of this type include Medicare, Unemployment Insurance, and Social Secu- 1 The education variables are jointly significant in all social program utilization and income models at the 0.05 level or better, except for welfare income, food stamp income, and Unemployment Insurance income of men; hospitalization of women; and SSI income of men and women over 64. For details, see Appendix C. 41
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THE ARTS CHILD POLICY CIVIL JUSTICE
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The Benefits to Taxpayers from Incr
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Preface Meeting the educational dem
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Figures 3.1. Present Value of Lifet
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Page 25: Abbreviations ADA CPS EITC FTE GED
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Page 39 and 40: Chapter Two Analytic Approach There
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Page 57 and 58: Payments for Taxes and Social Progr
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Page 115 and 116: 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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Appendix C Social Program Participa
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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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