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

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<strong>The</strong> <strong>Benefits</strong> <strong>to</strong> <strong>Taxpayers</strong> <strong>from</strong> <strong>Increases</strong> <strong>in</strong> <strong>Students</strong>’ Educational Atta<strong>in</strong>ment<br />

Critical Assumptions..................................................................................25<br />

Putt<strong>in</strong>g the Results <strong>in</strong> Perspective.................................................................. 27<br />

Chapter Three<br />

Payments for Taxes and Social Programs........................................................29<br />

Taxation Mechanisms.................................................................................29<br />

Educational Atta<strong>in</strong>ment and Earn<strong>in</strong>gs..............................................................31<br />

Federal and State Tax Rates..........................................................................32<br />

Federal Income Tax Rates..........................................................................32<br />

Payroll Tax Rates....................................................................................33<br />

Average State Tax Rates............................................................................ 34<br />

<strong>The</strong> Effects of Increased Educational Atta<strong>in</strong>ment on Tax Payments........................... 34<br />

Related Studies........................................................................................ 36<br />

<strong>The</strong> Effects of Multilevel <strong>Increases</strong> <strong>in</strong> Educational Atta<strong>in</strong>ment on Tax Payments.............37<br />

Sensitivity Analysis....................................................................................37<br />

Summary ...............................................................................................39<br />

Chapter Four<br />

Spend<strong>in</strong>g on Social Support Programs...........................................................41<br />

Background.............................................................................................41<br />

Analytic Approach.................................................................................... 42<br />

Effects of Educational Atta<strong>in</strong>ment on the Costs of Welfare Programs......................... 44<br />

Effects of Educational Atta<strong>in</strong>ment on the Costs of Hous<strong>in</strong>g Subsidies........................ 46<br />

Effects of Educational Atta<strong>in</strong>ment on the Costs of Food Stamps...............................47<br />

Effects of Educational Atta<strong>in</strong>ment on Supplemental Security Income Spend<strong>in</strong>g..............49<br />

Effects of Educational Atta<strong>in</strong>ment on Medicaid Spend<strong>in</strong>g...................................... 50<br />

Effects of Educational Atta<strong>in</strong>ment on Medicare Spend<strong>in</strong>g.......................................52<br />

Effects of Educational Atta<strong>in</strong>ment on the Costs of Unemployment Insurance................53<br />

Effects of Educational Atta<strong>in</strong>ment on Social Security Spend<strong>in</strong>g................................55<br />

Effects of Educational Atta<strong>in</strong>ment on Spend<strong>in</strong>g on Social Programs.......................... 56<br />

Sensitivity Analysis....................................................................................58<br />

Summary............................................................................................... 60<br />

Chapter Five<br />

Educational Atta<strong>in</strong>ment and Spend<strong>in</strong>g on the Corrections System........................61<br />

Analytic Approach.....................................................................................62<br />

<strong>The</strong> Effect of Educational Atta<strong>in</strong>ment on Crime Rates...........................................63<br />

Effects of Educational Atta<strong>in</strong>ment on Incarceration Costs.......................................65<br />

Sensitivity Analysis....................................................................................67<br />

Summary............................................................................................... 68

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