It’s obvious that Biden’s unconstitutional student loan payoff will hurt taxpayers. Without the benefit of political representation via Congress, the executive branch is imposing a significant new tax on them, estimated to cost as much as $1 trillion by the end of ten years. What’s funny, though, is that it’s going to suck money from the students it purports to help, all while funneling huge benefits to Democrats and the Deep State as a whole.
The sting in the tail of this little story arises because of an IRS rule: If a loan is forgiven, the amount forgiven is treated as income. Let’s see how this works in real life:
Pat, who graduated from a fancy university with a Queer studies Ph.D., managed to get a job in a local college’s administrative office, where she-he-it earns $81,000 per year. Pat acquired $150,000 in loans to get that Ph.D. She-he-it will eventually be able to pay off that loan, but it will take a while, and Pat feels it’s unfair that she-he-it, having gotten the benefit of the loan, is now burdened by that debt.
