The Biden administration’s student loan relief scheme has gotten a lot of press. But there is an item that needs to be noted about this wave of the presidential wand. And that is outside the fact that Biden is trying to bribe voters to vote Democratic.
The new wrinkle, and one that’s sure to send politicians scrambling, is how some of those who get their loans “forgiven” may owe state taxes on what effectively becomes income. Again, from Bloomberg:
Residents of New York, Virginia and eleven other states could end up with a surprise tax hit of hundreds of dollars next year on forgiven student loans.
President Joe Biden’s announcement that the government would forgive some student debt for individuals earning less than $125,000 was welcome news to many carrying large loan balances. But 13 states have laws that treat this forgiven debt as income, meaning that it’s subject to state levies on earnings.
This entire episode is a reminder that there’s no such thing as a free lunch.
The backlash over the demented one’s plan to “forgive” student loans is off the wall. Of course, there is no such thing as forgiveness. We The People would be picking up the tab.
For those who want a chuckle or two over the whole student loan fiasco, Reno Collier’s country fried take on it. There is a certain Hunger Games approach to some of his suggestions.
Nancy Pelosi is on the record stating that the President doesn’t have the authority to forgive student loan debt.
The question is whether or not Biden has that authority to unilaterally forgive any debt. Joe Biden said he does not have that authority. He can delay or postpone payments, but he cannot forgive them. Only Congress can do that, as Pelosi stated.
But, it’s an election year so Joe figured let’s buy some votes and then blame “Republican” judges when his actions are declared illegal.