Biden ‘Canceling’ Student Debt Could Cost $2,000 Per Taxpayer

[Elderberry]

Legal Insurrection by  Mary Chastain Wednesday, August 24, 2022

“There were just under 158 million taxpayers in 2019 according to the IRS, meaning that the average cost of debt cancellation is $2,085.59 per taxpayer.”

Biden isn’t “canceling” student debt. He’s making everyone else pay for it. The National Taxpayers Union Foundation reported:

    Public reporting indicates President Biden may soon announce executive action canceling federal student loan debt for a large set of borrowers. Though parameters of the student debt cancellation have yet to be announced, the Biden administration may cancel $10,000 of debt per borrower for borrowers making $125,000 in income per year or less.

    Based on projections from the Penn Wharton Budget Model for the total cost of such cancellation, we estimate President Biden’s plan would cost the average taxpayer over $2,000.

    The Penn Wharton Budget Model (PWBM) released a policy report on Tuesday that estimated the total cost of $10,000 in debt cancellation for borrowers making less than $125,000 per year would be $329.1 billion over 10 years. There were just under 158 million taxpayers in 2019 according to the IRS, meaning that the average cost of debt cancellation is $2,085.59 per taxpayer.

More: https://legalinsurrection.com/2022/08/biden-canceling-student-debt-could-cost-2000-per-taxpayer/

[The_Reader_David]

This is an uninteresting "analysis", since the cancellation will simply inflate the currency and the cost will be borne by everyone in the US (and everyone buying products from the US) in the form of inflation, rather than charged to taxpayers only in the form of higher taxes.

In fact, it will harm most those who are too poor to pay Federal income tax, who are least able to deal with the price inflation that will result.

It's a horrible policy for both moral and economic reasons, but the "cost to the taxpayer" is not one of them.

[BellyAche]

And still there are many on the left who wanted all debt for all students "cancelled"!!!  I was so proud and happy to pay off mine.   Really, it's a nice feeling to be responsible!!! 

[massadvj]

This is an uninteresting "analysis", since the cancellation will simply inflate the currency and the cost will be borne by everyone in the US (and everyone buying products from the US) in the form of inflation, rather than charged to taxpayers only in the form of higher taxes.

In fact, it will harm most those who are too poor to pay Federal income tax, who are least able to deal with the price inflation that will result.

It's a horrible policy for both moral and economic reasons, but the "cost to the taxpayer" is not one of them.

 

[Elderberry]

And still there are many on the left who wanted all debt for all students "cancelled"!!!  I was so proud and happy to pay off mine.   Really, it's a nice feeling to be responsible!!! 

I never took out a loan. The semesters I worked full time while taking a full time load were hell. The GI Bill helped out a little.

[verga]

And still there are many on the left who wanted all debt for all students "cancelled"!!!  I was so proud and happy to pay off mine.   Really, it's a nice feeling to be responsible!!! 

The day FJB made that campaign promise Vergette went and paid off our last amount. Vergette was not happy about Pedo Pete

[Hoodat]

And still there are many on the left who wanted all debt for all students "cancelled"!!!  I was so proud and happy to pay off mine.   Really, it's a nice feeling to be responsible!!! 

Agreed.  It was a great feeling for me as well.  And welcome to TBR.

[verga]

I never took out a loan. The semesters I worked full time while taking a full time load were hell. The GI Bill helped out a little.

I took out as loan for my last degree, and the only reason I did was that the Credit Union was payi8ng a higher interest on our savings than the cost of the loan.

[BellyAche]

From articles in today’s WSJ (8/26):

How Colleges Will Cash In on Biden’s Student Loan Forgiveness:
Col­leges have no fi­nan­cial in­cen­tive to en­sure that their pro­grams im­part skills de­manded by em­ploy­ers or pro­vide a de­cent liv­ing. What does it mat­ter to them if an an­thro­pol­ogy grad­u­ate winds up work­ing as a barista? Col­leges are paid on the front end, and gov­ern­ment is now writ­ing off the cost on the back end.

Biden’s Student Loan Forgiveness Plan Refunds Borrowers Who Paid During Pause:
The few Amer­i­cans who con­tin­ued to make stu­dent loan pay­ments dur­ing a fed­eral pause en­acted at the be­gin-ning of the pan­demic will now be el­i­gi­ble for a re­fund.

Student Debt Forgiveness Is Biden’s Bluto Moment:
“Pour­ing roughly half [a] tril­lion dol­lars of gaso­line on the in­fla­tion­ary fire that is al­ready burn­ing is reck­less,” Ja­son Fur­man, the Obama ad­min­is­tra­tion’s top econ­omist, tweeted. Amer­i­cans al­ready doubted Mr. Biden’s new cli­mate and health law would do much to lower prices, but they’ll draw a di­rect line from the loan bailout to fur­ther price hikes. A CNBC poll says nearly 60% of Amer­i­cans fear this hand­out will make in­fla­tion worse.

 

[libertasbella]

And still there are many on the left who wanted all debt for all students "cancelled"!!!  I was so proud and happy to pay off mine.   Really, it's a nice feeling to be responsible!!! 

"Really, it's a nice feeling to be responsible!!!" will not become a Democrat campaign slogan any time soon.