Using data from the Department of Education’s Federal Student Loan Portfolio and the 2019 Survey of Consumer Finances, we examine the effects of forgiveness on borrowers’ 2022 state tax liabilities.

For those residing in a handful of states, their state income tax bills might be several hundred dollars higher, and their state coffers several hundred million dollars richer.

In this report, we analyze the budgetary, distributional, and incentive effects of current-law child tax benefits and evaluate recent proposals to further expand the child tax credit.