According to a supposedly non-partisan analysis, taxpayers will be doling out nearly $400 billion to cover President Joe Biden’s proposed student debt bailout, otherwise known as redistribution of wealth and vote buying.
The National Taxpayers Union Foundation estimates the additional cost amounts to an average of $2,500 per taxpayer (not household) when government spending cuts, higher interest rates and future tax hikes are factored into the projection, the Washington Times reported.
“More government debt means higher interest payments on the nation’s new and existing debts, crowding out private investment,” said Andrew Lautz, director of federal policy for the National Taxpayers Union. “NTUF believes that taxpayers are ultimately responsible for paying down the national debt either through government spending cuts or higher taxes in the future.”
“But no one’s taxes will immediately increase due to this executive action,” he added.
Estimated added tax burden from the program averages out to $2,500 per taxpayer when accounting for government spending cuts, higher interest rates and future tax hikes to pay for the program.https://t.co/Km0owhevuk
— The Washington Times (@WashTimes) September 1, 2022
The basics of the plan involve canceling $10,000 in student debt for borrowers who earn less than $125,000 per year and $20,000 in debt for those who received Pell Grants. Additionally, the plan will forgive loan balances after 10 years of payments instead of 20 years if the original loan balance was $12,000 or less.
Of course, those particulars are only what is known so far, and there is every reason to believe the proposal will become increasingly more complicated and more expensive. After all, it’s a government program spearheaded by a president who’s been congenitally wrong about everything for 40-plus years.
Another analysis conducted by the Committee for a Responsible Federal Budget estimates that Biden‘s plan will cost the U.S. Treasury (meaning the American people) anywhere from $440 billion to $600 billion.
Another projection called the Penn-Wharton Budget Model estimates the plan will cost up to $605 billion and could easily increase to $1 trillion when accounting for potential “behavioral changes.”
Of course, the White House initially estimated the price at $240 billion, well below any other independent conclusions.
Recently, BPR reported Fox News’ Martha MacCallum took White House economic adviser Jared Bernstein to task over the loan forgiveness plan which he tried to defend by saying the U.S. has been raking in the tax dollars (which is another debate for another day.)
“So the way to think about this is that the government is taking in way more in both receipts and spending way less than we have been in prior years,” Bernstein said.
“But it’s still a huge deficit,” MacCallum shot back.
Bernstein deflected by retorting, “The deficit remains a negative. No question.”
“We still spend more than we have,” MacCallum stated. ”So if I save more of that money, that’s not an income. That’s not a windfall. I don’t have that money.”
Bernstein immediately tried to flip the script.
“The question on the table, I think you’re making this way too confusing,” he told the news anchor.
“I don’t think so,” MacCallum said, demonstrating her understanding of simple arithmetic.
‘Hold on, hold on!’ WH econ adviser gets TESTY with Martha MacCallum over student debt relief https://t.co/JAsALci7vE pic.twitter.com/maOjsgeT28
— Conservative News (@BIZPACReview) August 30, 2022
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Frank (Chip) Webster is a musician and composer, former teacher of percussion and U.S. Army Infantry veteran. He holds a degree in English from Arizona State University.
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