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Institute for American Values Institute for Marriage and Public Policy - page 34 / 44

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Page 34

11. Information on FY 2003 federal School Breakfast and Lunch expenditures came from the U.S. House Committee on Ways & Means Green Book (http://www.gpoaccess.gov/wmprints /green/index.html) and was estimated for FY 2007 using the CPI-U.

12. Holzer and his colleagues estimate that U.S. national income is $170 billion lower because of childhood poverty. Using the estimate that 36.1 percent of childhood poverty is due to family frag- mentation, then the decrease in national income from family fragmentation is approximately $61 bil- lion. To make these calculations we assume that this extra national income would be taxed at a 10 percent federal marginal income tax rate, a 15.3 percent FICA tax rate, and an 11 percent state plus local tax rate. The latter figure is the average percent of income spent on state plus local taxation (see the Tax Foundation website at http://www.taxfoundation.org/taxdata/show/335.html). We use a 15.3 percent FICA tax rate because tax economists generally believe that employees bear the full burden of the employer share of these payroll taxes via lower wages (see Daniel Hamermesh and Albert Rees, The Economics of Work and Pay, 5th ed. (New York: HarperCollins College Pub., 1993).

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