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Campaign promise fulfilled: student loan forgiveness
#31
C(-)ris wrote:
[quote=Acer]
[quote=C(-)ris]
[quote=Acer]
It seems rather unChristian to begrudge the good fortune of others.

It isn't the good fortune that is begrudged. If they had funded this via lottery sales or a settlement against private colleges, or any other revenue source besides taxes that would be one thing. Even if they would have made it a tax deduction to reduce income taxes to zero that would have been more agreeable. But straight up gifting $20k to someone who made the conscious choice to be irresponsible with their future is....well, irresponsible with others money.
OK, I take issue with "irresponsible with their future." These are young people who made an investment in their future. They borrowed money to do it. BIG, DEAL. We borrow money to invest in a house, why not invest in a career--something that will bring returns for the rest of their lives? Most of them are up to date on their loans. Most of them are having to pay those loans back when they are at the lowest earning years of their new careers, while also getting married, having children, paying rent, saving for a house, repairing their cars. You may disagree that they need or deserve loan forgiveness, but there's no call to insult them.
We certainly do borrow money to invest in many things. Can I get $20k because I have a mortgage or a car loan? Perhaps a better idea than giving out free money would be to defer the payments(and no interest) 5 years from graduation.

I thought the point of the forgiveness was because the recipients weren't able to pay for the loans and keep a roof over their head. As in, they took out WAY to much in loans than they could possibly afford and it will take a lifetime to pay them back.

The people you are describing have the ability to pay the loans back and should continue to pay them on the normal payment schedule. They are not irresponsible, they are doing exactly what they should be doing. Investing in their future. However, if the government gives them a gift of $20k of taxpayer money the government is the irresponsible one. These aren't the people who need the $20k so they can eat and put a roof over the heads. They are just getting a nice chunk of change giving them an advantage over others for no reason.
The American mortgage system is one of the biggest government giveaways in our country's history. It has mostly benefitted white middle and upper income people and is a major driver of wealth inequality. You get a huge discount off taxes you would normally owe simply because you can afford to buy a house. And the bigger your loan, the more others with less money are picking up the slack.

Having the govt give handouts to wealthy people and corporations is so normailzed in our society that when the rest finally get a small piece of that, people lose their minds.

It's interesting.
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#32
C(-)ris wrote:
Can I get $20k because I have a mortgage...

As a matter of fact, the government will assist you.

Publication 936 (2021), Home Mortgage Interest Deduction

C(-)ris wrote: ... or a car loan?

IRS issues standard mileage rates for 2022

Bottom line, it's believed that it's more beneficial to society as a whole, that you get an education than that you get a car.
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#33
DeusxMac wrote:
[quote=C(-)ris]
Can I get $20k because I have a mortgage...

As a matter of fact, the government will assist you.

Publication 936 (2021), Home Mortgage Interest Deduction

C(-)ris wrote: ... or a car loan?

IRS issues standard mileage rates for 2022

Bottom line, it's believed that it's more beneficial to society as a whole, that you get an education than that you get a car.
I would be happy to fund the student loan forgiveness as a DEDUCTION and not a CREDIT. There is a HUGE difference. A deduction will reduce your tax bill to zero and you won't owe anything, however you also will not get back more than you paid, any "refund" you get would be your own money that was withheld. Once you hit zero that is it. The Credit will provide $20k even if you paid in zero.
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#34
C(-)ris wrote:
[quote=DeusxMac]
[quote=C(-)ris]
Can I get $20k because I have a mortgage...

As a matter of fact, the government will assist you.

Publication 936 (2021), Home Mortgage Interest Deduction

C(-)ris wrote: ... or a car loan?

IRS issues standard mileage rates for 2022

Bottom line, it's believed that it's more beneficial to society as a whole, that you get an education than that you get a car.
I would be happy to fund the student loan forgiveness as a DEDUCTION and not a CREDIT. There is a HUGE difference. A deduction will reduce your tax bill to zero and you won't owe anything, however you also will not get back more than you paid, any "refund" you get would be your own money that was withheld. Once you hit zero that is it. The Credit will provide $20k even if you paid in zero.
(tu)
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#35
Think of it as lump-sum tax credit provided up front, but virtually amortized over their working careers of 35 years.
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#36
I agree that this probably isn't the best move policy wise, but its also a looooong ways from the worst. Efforts should be made to reduce the cost of education moving forward.

Oh - we should understand WHY this is happening - its because its something the President can DO, rather than trying to get a bill passed the fillibuster.
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#37
mattkime wrote:
Oh - we should understand WHY this is happening - its because its something the President can DO, rather than trying to get a bill passed the fillibuster.
Bingo.
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#38
A-Polly wrote:
:agree: with Lemon Drop, and am glad to see this.

Perfect take from the Liberal Redneck:
https://youtu.be/4K8ZKkzNbD0
(NSFW language)

P.S. I started to enter a quotation from the video and encountered the automatic censor for the first time!
Excellent. I've had mixed emotions and Trae has addressed them perfectly here.
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#39
C(-)ris wrote:
[quote=DeusxMac]
[quote=C(-)ris]
Can I get $20k because I have a mortgage...

As a matter of fact, the government will assist you.

Publication 936 (2021), Home Mortgage Interest Deduction

C(-)ris wrote: ... or a car loan?

IRS issues standard mileage rates for 2022

Bottom line, it's believed that it's more beneficial to society as a whole, that you get an education than that you get a car.
I would be happy to fund the student loan forgiveness as a DEDUCTION and not a CREDIT. There is a HUGE difference. A deduction will reduce your tax bill to zero and you won't owe anything, however you also will not get back more than you paid, any "refund" you get would be your own money that was withheld. Once you hit zero that is it. The Credit will provide $20k even if you paid in zero.
I believe your plan would cost the federal government far more than simply forgiving $10k or for some $20k in student loan principle. Think in terms of comparative revenue for the federal govt.

The median American taxpayer contributes $15k to the federal govt every year, so if you wipe out the tax bill for 43 million mostly middle class taxpayers via a one time deduction, that's a lot of lost revenue compared with interest paid on $10k in loans over the same period. And low income workers would get a bigger check through the earned income credit. (No, once you hit zero that is not it, if you are low income)

Why not just reduce the loan balance. What is this deduction supposed to do?

For those dismissing this as a political ploy.. take a look at the full plan
It includes extensive reforms to higher ed financing.
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#40
Turn off debt forgiveness to any corporations earning more than $10M. See how much you save ?
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