tag:blogger.com,1999:blog-4202804909803677380.post4114412705005852556..comments2024-03-28T08:37:14.025-07:00Comments on Condemned to DEBT: Senator Elizabeth's Student-Loan Forgiveness Plan Isn't Radical: The Feds are Already Forgiving Billions of Dollars in Student DebtRichard Fosseyhttp://www.blogger.com/profile/05915307718139521622noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4202804909803677380.post-45083493917454510672019-05-28T08:21:25.136-07:002019-05-28T08:21:25.136-07:00Thanks again.
In my new article on the true cost o...Thanks again.<br />In my new article on the true cost of debt reform, I think we need to add two extra features to Income Based Repayment:<br /><br />1. all debts are written off at the borrower's age 65 (as is done in England right now)<br /><br />2. No income taxes on any forgiven debt<br /><br />This will have an annual 'cost' in federal finance in terms of monies that will not be received. (on the 85-90% of loans now held by government.)<br /><br />Let's say that every year, 1 million persons who are on IBR come up to age 65. Their payments cease, let's say that is $5,000 apiece so the feds lose $5 billion a year in payments, big deal.<br /><br />But say that their average total debt balance is $100,000 each.<br />They would owe income taxes on that under current law, say $30,000 per taxpayer. <br /><br />If we forgive that tax, the feds lose $30 billion.<br /><br />This is not so frightful really. Think how much we spend for military care for veterans of stupid wars. It does cost money to unwind federal mistakes.Bob Hertzhttps://www.blogger.com/profile/08889826739646491269noreply@blogger.comtag:blogger.com,1999:blog-4202804909803677380.post-38699396583425798302019-05-03T09:15:35.893-07:002019-05-03T09:15:35.893-07:00Richard, keep up the good work. I hope you are abl...Richard, keep up the good work. I hope you are able to share your information with Alan Collinge (Student Loan Justice) and the Debt Collective. Dahn Shaulishttp://collegemeltdown.blogspot.com/noreply@blogger.com