IRS, Twenty Year, Three Hundred Billion Dollars discussed on New American Funding


The irs comes calling a couple hundred billion dollars in total here of the amount of of debt that's owed or could be required to ask the right now there's about there's more than three hundred billion dollars enrolled in income driven repayment so that's just the amount of money that's in these plans now keep in mind some people will pay off their debt before reaches the twenty year mark and therefore they will they will not face a tax bill and i should also clarify that if you're in this program called public service loan forgiveness there is no tax it if you if you're not plan but if you're a private sector worker you know yeah i mean there's three dollars of this one estimate was that about one hundred eight billion just in principle will be forgiven just for all of the loans that were issued for the past year so that doesn't include perspective ones but we're talking about a lot of cash here and but you but here's here's the thing that i should point out you know people don't have the money the irs might not be able to might be forced to cut you a deal are just might not be able to come after you if you can show the actually don't have the wealth to pay off these bills the irs might just be forced to write off that debt so it's really a big problem because some people will be forced to pay you know even if if if they have the cash saved up they you know might have to pay a lot but then you have this issue of if the irs forgive some of this you know it's some people might get a bigger subsidy than than than than others and there's a fairness issue here anybody from another planet josh would look at this and go this is insane so you can't afford to pay for college so you borrow then you can't really afford to pay it back so you postpone it and just pay a little bit and then you can't afford to pay what you owe from the government and that all might go away too yeah you know i was talking with someone one of the higher education trade groups this what i was talking with someone who is who is the head of this trade group and he was around when they passed this law and you know they he said that people do not pay attention to this idea that forgiven mouth would be taxed it would just kind of something was it was like they were it was it was never site and so i think what's happening now is as we get closer to be two people you know reaching the twenty year mark we aren't there yet but you know as things get get closer to that point people are starting to realize this is going to be a big problem next josh wall street journal reporter josh mitchell who spaced in washington twelve minutes now after the hour on this weekend.

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