18 votes

White House proposes $1.8 trillion package that would dramatically expand education, safety net programs

6 comments

  1. psi
    Link
    Part of the costs would be offset by reform long overdue: increased IRS enforcement [1]. If those figures hold, that would be a nearly 9-to-1 return. Of course, one might argue $80 billion over 10...

    Part of the costs would be offset by reform long overdue: increased IRS enforcement [1].

    White House officials have eyed raising as much as $700 billion from toughening IRS enforcement and auditing over 10 years, two of the people said, although the precise amount in the plan remained unclear. Enforcement will be focused on the wealthy, the people said.

    [...] White House officials are looking at increasing the agency’s budget by $80 billion over 10 years, a figure first reported by the New York Times

    If those figures hold, that would be a nearly 9-to-1 return. Of course, one might argue $80 billion over 10 years is still underfunding the IRS. Uncollected taxes abound, as the Commissioner of the IRS explained.

    IRS Commissioner Charles P. Rettig told Congress earlier this month that it “would not be outlandish” to believe the tax gap could exceed $1 trillion annually. The tax gap is the difference between the amount of taxes owed and the amount of tax revenue collected.

    Regardless, increased IRS enforcement, unlike tax hikes, should be non-controversial: the targets of enforcement will be tax cheaters, not the destitute, the middle class, or even "job creators".


    [1] https://www.washingtonpost.com/us-policy/2021/04/27/irs-biden-american-families-plan/

    13 votes
  2. [4]
    WendigoTulpa
    Link
    Anyone more politically in-the-know have any idea what the likelihood of student loan forgiveness is at this point? I understand Biden doesn't want to do it by executive order but is there any...

    Anyone more politically in-the-know have any idea what the likelihood of student loan forgiveness is at this point? I understand Biden doesn't want to do it by executive order but is there any chance it may actually go to congress and pass, even for the lower 30-50K amounts?

    4 votes
    1. stu2b50
      Link Parent
      It's not something that can be done with budget reconciliation so it's pretty unlikely (well, directly anyway; you might be able to do indirectly with like a 100% tax credit [not deduction, credit...

      It's not something that can be done with budget reconciliation so it's pretty unlikely (well, directly anyway; you might be able to do indirectly with like a 100% tax credit [not deduction, credit - there already is a deduction for student loan interest] up to X amount of federal student debt - although this would require that you be employed with enough of a taxable income that the tax credits can pay for the loans).

      If it were to pass, $10k per student would be the most likely value - it's what's polling the most favorably by a good margin. I would say less than 50% chance, although another postponement of interest is likely.

      5 votes
    2. [2]
      Wulfsta
      Link Parent
      I’m not sure about federal forgiveness, but some states appear interested in legislation like this. Really a trade your debt for different debt sort of deal...

      I’m not sure about federal forgiveness, but some states appear interested in legislation like this. Really a trade your debt for different debt sort of deal...

      2 votes
      1. frostycakes
        Link Parent
        Not to mention that helps people who are least in need of student loan assistance-- if one can qualify for a mortgage in the first place with student loans, they're almost by definition managing...

        Not to mention that helps people who are least in need of student loan assistance-- if one can qualify for a mortgage in the first place with student loans, they're almost by definition managing them well, or at least well enough to keep good credit.

        What of the people for whom the decision is default on loans in order to make rent, or not be able to afford housing while keeping the loans current? Pretty sure they're not going to be able to purchase a home in the first place.

        7 votes
  3. Eabryt
    Link
    Now someone tell me why this is a terrible thing and shouldn't pass as it currently is.

    Now someone tell me why this is a terrible thing and shouldn't pass as it currently is.