Mississippi will become the first state to tax forgiven student loan debt, as many other states weigh doing the same.
As Bloomberg reports: “Several states are moving ahead to exempt residents from being taxed on forgiven student loan debt under President Joe Biden’s relief plan, while Mississippi has decided against the exemption.”
As the Tax Foundation reports, while the student loan forgiveness plan is not subject to federal taxes, it still could be subject to state taxes, an action many other states are currently weighing.
As Mississippi’s WLOX reports: “‘Typically, loan forgiveness is treated as taxable income. This makes sense from a big-picture tax policy perspective,’” John Buhl, an analyst at the Tax Policy Center, wrote in an email to Insider. ‘But for someone getting $10,000 or $20,000 in forgiveness, that could equate to a year-end tax bill well into the four figures.’”
Illegitimate President Biden’s student loan forgiveness scam will undoubtedly hurt our economy. More importantly, it will hurt the taxpayer, including those taxpayers who paid off their debts or forwent college altogether. As the DC Enquirer reports:
“A new analysis by the Penn Wharton Budget Model found that such a program will cost the taxpayer $300 billion in the first year with, “69 and 73 percent of the debt forgiven accrues to households in the top 60 percent of the income distribution…
The average cost per taxpayer to pay for failed college graduates who got degrees in social justice would come out to nearly $2,100 largely driven by increased taxes on everyday Americans.”
So Biden’s forgiveness plan is really just an instance of economic collectivization, in keeping with his largely socialistic economic policy and rhetoric — decrying “millionaires and billionaires” like an amateur Bernie Sanders.
Millionaires and billionaires are paying a lower tax rate than teachers and firefighters. We’re going to restore fairness to the tax code, give working people a much-needed tax cut, and make the investments that will grow our economy for years to come.
— Brain-Dead Biden (@JoeBiden) September 26, 2021
To use Leftist rhetoric, it is not equitable to push a tax burden on Americans who are completely detached from the college system. That they had the sense not to attend an increasingly corrupt set of institutions is a badge of honor, not disgrace. We hope one day the Democrat party will wake up to the damage they are causing America. More importantly, we hope they adjust for the sake of our Democratic Republic. Our future depends on it.
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Author: Bryan Richardson
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