Another excellent post. In addition to vote buying, I wonder if this also a revenue generating opportunity for the govt. Would explain why the forgiveness threshold is so high. Those near the top of it would exchange their low interest rate on student loan for a significantly higher income tax rate on that forgiven loan. Govt takes an initial hit on principal but makes it back relatively quickly. A hidden “tax” that polls favorably for those impacted
Another excellent post. In addition to vote buying, I wonder if this also a revenue generating opportunity for the govt. Would explain why the forgiveness threshold is so high. Those near the top of it would exchange their low interest rate on student loan for a significantly higher income tax rate on that forgiven loan. Govt takes an initial hit on principal but makes it back relatively quickly. A hidden “tax” that polls favorably for those impacted
That's a good thought, but the federal government will not be taxing loan forgiveness if it goes through. States are able to tax it if they want.