Demonstrating the urgent need for broad national action and collaboration between private and public leaders in our communities, The White House Council for Community Solutions released an analysis showing that in 2011 alone, taxpayers shouldered more than $93 billion to compensate for lost taxes and direct costs to support the young people disconnected from jobs and school. At least one in six young adults is disconnected from education and work, according to this report. Projections show that over the lifetime of these young people, taxpayers will assume a $1.6 trillion burden to meet the…
In 2006, New York instituted a noncustodial parent earned income tax credit (NCP EITC) to encourage low-income noncustodial parents to work and pay child support. This study examines the credit's impacts through 2009. We use a regression discontinuity approach exploiting a drop in NCP EITC eligibility when taxpayers' youngest children turn 18, and find the NCP EITC increased the proportion of noncustodial parents paying their child support in full by approximately 1 percentage point. Effects were stronger among parents with low child support orders. Our estimates may represent upper-bound…