State Tax Policy and Child Poverty in New Mexico

General Information

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Evaluator(s) New Mexico Advocates for Children and Families
Investigator(s) Kelly O'Donnell (New Mexico Human Services Department)
Kate Krause (New Mexico Advocates for Children and Families)
 
Domain Income Security/TANF
Status Completed with continuing analysis
Duration Sep 1999 - Jan 2000
Type Policy Analysis
Program/Policy Description This project takes advantage of the wealth of data provided to the state of New Mexico by applicants for the state's Low Income Comprehensive Tax Rebate (LICTR). LICTR returns cash to low income New Mexicans, even those with no state tax liability. Roughly 95% of low income New Mexicans apply for LICTR. In doing so they provide detailed information on their sources of income and household composition. Using this extraordinary untapped database, we have constructed a simulation model that allows us to predict, with a high degree of accuracy and detail, the impact on child poverty of different state tax policies, including Earned Income Tax Credits, property tax rebates, child daycare credits, and child support deductions.
Notes This is one of a number of investigations we are undertaking using the LICTR database. Still in its infancy is an examination of post-TANF outcomes using a panel dataset composed of 1997, 1998, and 1999 LICTR returns.
 
Last Updated 12/12/99
Type of Summary Unreviewed
Contact(s) Kay Monaco
New Mexico Advocates for Children and Families
801 Encino PL
(T) (505) 244-9505
Submitter(s) Kelly O'Donnell (odonnell@unm.edu)
New Mexico Human Services Department
Department of Taxation and Revenue
1100 St. Francis Drive
(T) (505) 823-9324

Populations Studied

Target Population Children
Low-income households
Rural Populations
Subgroups Analyzed Single parent families
Two-parent families
Low-wage workers
Children 1-6
Children 7-18
Sample Size and Unit All 1998 tax returns filed by New Mexicans under 280% of poverty. These 440,000 returns represent over 1,000,000 people, well over half the New Mexico population. Household and individual filer are the units of analysis.
Execution Not reported.

Sites Studied

New Mexico, including all cities and counties