How Wisconsin-Style Child Support Guidelines Violate Mainstream Economic Theory and Empirical Research: Georgia as an Example

This paper evaluates Wisconsin-style child support guidelines in terms of how they are or are not consistent with mainstream economic theory and empirical research. The focus is on comparisons of overall consumer spending patterns with discussion on the impact of taxes, saving, and subsistence needs affecting consumer spending. Importantly, this paper also evaluates the impact of Wisconsin-style child support guidelines on the changes in the standard of living of custodial and non-custodial parents on an after-tax, after-child support basis. Additionally, the economic studies underlying the original Wisconsin guidelines are evaluated against mainstream economic theory and data to explain any divergences in current practice guidelines from mainstream economic theory and research. Indeed, this paper finds dramatic divergence in Wisconsin-style child support guidelines-with Georgia used as an empirical example-from mainstream economic theory and research. Notably, these guidelines inappropriately result in child support obligations that rise as a proportion of after-tax income, creating an especially large transfer of after-tax income at moderate and high income levels to the custodial parent. Importantly, thi