The student loan scam will hurt the students and help the Deep State
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.
Pat is thrilled to think that she-he-it will get $10,000 in "free" money before the year is over. Sure, Pat will still have to pay down the remaining $140,000 debt, but she-he-it is pretty sure that Biden will excuse that amount, too. In any event, Pat has an arrangement that sees him pay relatively small amounts every month (plus, she-he-it has saved a fair amount thanks to the long COVID hold on loan payments). Life is good.
Image: An unpleasant surprise (edited) by gpointstudio.
Naturally, Pat's gratitude will ensure she-he-it votes a straight Democrat ticket in November. Pat, however, is in for a surprise.
You see, next year, when Pat is paying her-his-its taxes, she-he-it will learn that the $10,000 is taxable income, payable in full in 2023. Moreover, Pat will have been popped from the 22% tax bracket into the 24% tax bracket. Pay up, Pat!
There's one more little trick here: the government is double-dipping. First, thanks to this unconstitutional taxation without representation, the Democrats will buy votes using around $1 trillion in taxpayer funds. (That's unless a lawsuit before an ethical judge doesn't stop this travesty.).
But wait! There's more: the government (read: the Deep State) will also get back as new taxes a percentage of every $10,000 check written to those people holding student loans. What a great gimmick.
What Biden is doing is unconscionable. It's illegal and inflationary, and it places a huge burden on people who will obtain no benefit from the money spent. However, we can still laugh as we envision all those leftist "something studies" majors as they contemplate their new tax bill thanks to Joe Biden and the Democrats.
To help along that mordant laughter, there's a fun new video out now attacking this illegal Democrat vote-buying scheme. The American Action Network has produced a great new video. In it, three blue- and pink-collar workers claim to be incredibly happy that they can work extra shifts and miss out on their family to hand $10,000 over to kids with degrees that have earning potential: