Here is a chart prepared by Melanie Cummings of CRC that illustrates (using NY income numbers) just how child support spells impoverishment for the obligor.  In this case, a father, earning $55,000 per year pays child support for 2 children and ends up with an income of only $14,000.

The mother, earning $26,000 per year, ends up having a disposable income of over $44,000.  The tax cost of all this to American Taxpayers is over $22 Billion.   Click here for a chart that explains this.

CLICK HERE FOR DOWNLOADABLE EXCEL CHART

FEDERAL AND STATE TAX FRAUD: INTACT FAMILY vs. DIVORCED FAMILY - TWO CHILDREN
Divorced Family Has To Earn To Pay $18,700.88 Basic C/S			$ 116,800.00
Current Wages Minus FICA			$ (74,803.50)
Where does this money come from - 35.96% Higher?		Difference	$ 41,996.50
			Intact Family	% Of Taxes
	Father	Mother	Total	Paid
Wages	$ 55,000.00	$ 26,000.00	$ 81,000.00
FICA	$ (4,207.50)	$ (1,989.00)	$ (6,196.50)
Sub Total	$ 50,792.50	$ 24,011.00	$ 74,803.50
NY State Taxes	$ (2,750.00)	$ (1,300.00)	$ (4,050.00)
Sub Total	$ 48,042.50	$ 22,711.00	$ 70,753.50
Federal Taxes: 28% / 15%	$(15,400.00)	$ (3,900.00)	$ (19,300.00)
Net Income: Disposable Income	$ 32,642.50	$ 18,811.00	$ 51,453.50	36.48%
Health Care Premium			$ (2,000.00)
Total			$ 49,453.50
Basic Child Support Payment Difference:
Divorced Family: 25% Of Gross Minus FICA(36.35% Of Net)	$ 12,698.13	$ 6,002.75	$ 18,700.88
% For Med./Daycare	68%	32%
Intact Family: C/S Pymt. 25% Of Net Income	$ 8,747.10	$ 4,116.28	$ 12,863.38
Variance Between Divorced and Intact Families - 45.38% Higher			$ 5,837.50
	Divorced Parents		Intact Family
Reality Check:Each Parent One Child Exemp.	Father	Mother	Total
Wages	$ 55,000.00	$ 26,000.00	$ 81,000.00
FICA: 7.65%	$ (4,207.50)	$ (1,989.00)	$ (6,196.50)
State Taxes: 5%	$ (2,750.00)	$ (1,300.00)	$ (4,050.00)
Federal Taxes: 28% / 15%	$(15,400.00)	$ (3,900.00)	$ (19,300.00)
Net: Disposable Income	$ 32,642.50	$ 18,811.00	$ 51,453.50
Child Support Payment	$(12,698.13)	$ 12,698.13
Health Ins. Premiums (Dad Has To Pay 100%)	$ (1,200.00)	$ -
Out-of-Pocket Med. Expenses - $1,000	$ (680.00)	$ (320.00)
Day Care Expenditures - $2,000 For P/T Employ.	$ (1,360.00)	$ (640.00)
Sub Total	$ 16,704.37	$ 30,549.13
Monies Due To Hardworking Taxpayers (Mother keeps wages/interest income at Max. EIC level):
Monies are not reported to federal and state agencies.
Tax Value Of C/S Pymt.: 40.65%		$ 5,161.79
NY State Taxes: 0% EIC Amt.		$ 3,900.00
Fed. Taxes: 0% EIC Amt.		$ 1,300.00
Approx. NY State Credits/EIC/Refund		$ 1,100.00
Approx. Federal Credits/EIC/Refund		$ 2,271.00
Sub Total - Disposable Income	$ 16,704.37	$ 44,281.92	Mother Gains $13,732.79
Parenting Time Monies	$ (2,500.00)		Pays $0.00 Basic C/S
Total - Disposable Income (25.83% Of Gross)	$ 14,204.37	$ 44,281.92	$ 58,486.29
** If Intact, total family disposable income increased $9,032.79 BUT income level is not
entitled to high Fed./State subsidies - Hardworking Taxpayers' Monies. ($58,486.29 - $49,453.50)
			Fed/State Tax-
	Father	Mother	payers' Monies	Total
Actual Divorced Family Entire C/S Payment	$ 23,599.92	$ 960.00	$ 8,571.00	$33,130.92
% Of Net Income (Disposable Income)	72.30%	5.10%
Parents Pay Of $24,559.92	96.09%	3.91%	25.87%	125.87%
Mothers do receive 50% of 401K, house and other monies.
Father Lives On $14,204.37 Of $55,000	Amount	% Gross	% Net
Gross	$ 55,000.00
Taxes	$(22,357.50)
	$ 32,642.50	40.65%
Basic Child Support	$(12,698.13)
	$ 19,944.37	63.74%	38.90%
Add-On Out-of-Pocket Child Payments	$ (3,240.00)
	$ 16,704.37	69.63%	48.83%
Parent Time Costs	$ (2,500.00)	74.17%	56.49%
Total To Live On	$ 14,204.37	25.83%	43.51%
Total Of Taxes And All Child Support	$ 40,792.63	74.17%	125.0%