Daeyong Lee is helping American households guard their financial treasure.
It’s an appropriate role with the new assistant professor in human development and family studies, a local Korean whose name “Daeyong” means “big dragon” in English.
“Whenever people see a completely new tax provision, they want to make use of it to cut back their tax burdens,” Lee said. “American tax policy is changing all the time, so by understanding these provisions, families are better able to make solid financial decisions and protect their earned income.”
In a paper published in “Applied Economics,” Lee explored the 2003 U.S. Jobs and Growth Tax Relief Reconciliation Act, which changed the tax rates for dividends. He was quoted saying the empirical findings through the IRS Public Use Tax File data suggest American households gone to live in use the preferential tax remedy for qualified dividends over long-term capital gains to cut back the tax burdens on their own stock investments – showing variations in behavior stemming from federal policy changes.
From tax policy to health-related policy
Lee began his consider household financial matters and consumer behavior in his doctoral studies on the University of Washington, where he received awards for teaching excellence. He was quoted saying U.S. federal tax rules that will not include employer-sponsored health insurance benefits within an individual’s taxable income intrigued him. As Lee explored U.S. Census Bureau data to look into the subject, he found the tax rules affected American workers’ job selection and hours.
“Workers who highly value health insurance benefits are more inclined to find a job offering any adverse health insurance cover, or they’re prone to work in a full-time position to sustain those benefits,” Lee said. “This, thus, affects their savings and financial decisions.”
Using the U.S. Census Bureau’s Survey of Income and Program Participation, Lee found underneath the Affordable Care Act, households significantly reduced their liquid assets (savings in banking and interest-bearing accounts) by $897. The findings appeared in the journal “Economics Letters.”
“By analyzing nationwide survey data sets, I ask whether households are strategically leveraging current health care policy to improve their happiness,” Lee said. “With the Affordable Care Act, American families reduced their precautionary savings, owing to greater access to health care insurance, they don’t really have to set equally as much money aside for medical emergencies.”
Lee said even though the U.S. Census Bureau data sets are robust, they just go up to now.
“The secondary data set is actually great, but all at once, those data sets have certain limitations,” he was quoted saying. “The secondary data set is not going to inform us whether the insurance premium money for just a 19- to 25-year-old child pays because of the parent as well as child. Discovered see a field and enquire of the location where the premium payments are received from.”
Into the field
Peering into specific elements of health policy – including the extension of dependent coverage – helps researchers better understand human behavior and help all Americans, Lee said. He explained Iowa State University’s target extension and outreach gives him the channels to search for the answers he seeks.
“The most attractive thing in my situation about Iowa State – why I really like the school – is there’s an extension program where our faculty members connect with local communities,” he was quoted saying. “I’m easily able to consult with colleagues and get connected to individuals local neighborhoods to know how knowledgeable they may be about government policies and which way they modify their financial decisions.”
Jonathan Fox, the Ruth Whipp Sherwin Endowed Professor and director of the ISU Financial Counseling Clinic, said that is the major part of the human beings development and family studies philosophy.
“Our approach in instruction, research, outreach, and engagement is scheduled through the human element in the financial planning process,” Fox said. “Daeyong’s operate in family tax policy analysis builds on strengths in this department. Tax policy carries on evolving, and research to the human reply to policy changes is sorely needed to inform the next round of changes.”
By being familiar with the effects within the United States’ medical care insurance system, Lee said economists can better trace resulting behavioral adjustments in individuals who are beginning an occupation.
“Does the Affordable Care Act incentivize customers to start their career on a early age, or will the Affordable Care Act lead individuals to change their career plan or their financial plan to move from being independent from their parents to being dependent?” Lee said. “I’d prefer to answer those questions.”
Lee is likewise focused upon helping his students draw conclusions regarding own learning. He explained he enjoys observing his students beyond your classroom, making conversations and sharing experiences.
“Students can forget their original goal for entering a software program,” Lee said. “I love to help them get re-energized through conversations.”