5 ms·

It is not a tax levied on you, so you are not paying for it.

by hashmap 4y ago

s1artibartfast 4y ago
Who is paying for it then and why do my taxes keep going up?
- hashmap 4y ago
  Err.. did you just look at your taxes and think, "this must be that student loan forgiveness!!"? Student loan forgiveness is not being "paid for", because no money is changing hands. It is debt that is being forgiven. The government is not paying money out for this, because it is already spent. Your taxes keep going up because you are making more money. It's not a bad problem to have.
  - s1artibartfast 4y ago
    Federal and state taxes and spending are continually increasing. Federal spending tripled since 1970, after accounting for inflation and population change. State governments have done much the same. >Student loan forgiveness is not being "paid for", because no money is changing hands. My that measure, my bank shouldn't mind if I don't pay my mortgage. After all, new money isn't being spent.
    - hashmap 4y ago
      > My that measure, my bank shouldn't mind if I don't pay my mortgage. After all, new money isn't being spent. That's silliness. Your bank is not going to forgive your debt, so that will not pan out for you. Biden is forgiving the $10,000 in loans, so that will pan out for the recipients.
      - s1artibartfast 4y ago
        But certainly if it is no cost to the federal budget, it should be no cost to my banks budget. Why don't they simply forgive me loan. After all, no money is changing hands, so it is of no cost to them?
  - maerF0x0 4y ago
    > It is debt that is being forgiven. The money had to come from somewhere. At the very worst case it's dilutive printing that is an invisible taxation (via inflation). Keep in mind the hierarchy of the federal reserve, which is split into banks, which have at least some percent of private ownership. While the government can "forgive" the student debt, it must keep the debt owed to the federal reserve on it's balance sheets (deficits and debts). The Federal Reserve (afaik) is not forgiving that debt. Therefore some where, someday, someone is going to have to pay off the that government debt (and along the way the interest accruing)

It is not a tax levied on you, so you are not paying for it.

s1artibartfast 4y ago

Who is paying for it then and why do my taxes keep going up?

hashmap 4y ago
Err.. did you just look at your taxes and think, "this must be that student loan forgiveness!!"? Student loan forgiveness is not being "paid for", because no money is changing hands. It is debt that is being forgiven. The government is not paying money out for this, because it is already spent. Your taxes keep going up because you are making more money. It's not a bad problem to have.
- s1artibartfast 4y ago
  Federal and state taxes and spending are continually increasing. Federal spending tripled since 1970, after accounting for inflation and population change. State governments have done much the same. >Student loan forgiveness is not being "paid for", because no money is changing hands. My that measure, my bank shouldn't mind if I don't pay my mortgage. After all, new money isn't being spent.
  - hashmap 4y ago
    > My that measure, my bank shouldn't mind if I don't pay my mortgage. After all, new money isn't being spent. That's silliness. Your bank is not going to forgive your debt, so that will not pan out for you. Biden is forgiving the $10,000 in loans, so that will pan out for the recipients.
    - s1artibartfast 4y ago
      But certainly if it is no cost to the federal budget, it should be no cost to my banks budget. Why don't they simply forgive me loan. After all, no money is changing hands, so it is of no cost to them?
- maerF0x0 4y ago
  > It is debt that is being forgiven. The money had to come from somewhere. At the very worst case it's dilutive printing that is an invisible taxation (via inflation). Keep in mind the hierarchy of the federal reserve, which is split into banks, which have at least some percent of private ownership. While the government can "forgive" the student debt, it must keep the debt owed to the federal reserve on it's balance sheets (deficits and debts). The Federal Reserve (afaik) is not forgiving that debt. Therefore some where, someday, someone is going to have to pay off the that government debt (and along the way the interest accruing)