Tax Incentive Proposals to Enhance Child Support Payment Compliance and Tax Progressivity

Abstract

Currently, $38 billion in child support payments is due custodial parents in the United States. The purpose of this study is to investigate the public policy and theoretical economic implications associated with tax incentive proposals for child support payments. Institutional theory and economic modeling theoretically support this investigation. Overall, the study suggests that a tax incentive associated with child support payments would enhance tax progressivity and reduce income inequality while also enhancing non-custodial parent ability to pay their child support legal mandates. A tax incentive may also enhance child support payer perceptions of procedural and retributive justice.