Mississippi Has Confirmed It Will Tax Waived Student Loan Debt

Joe Biden and many of his allies in the Democrat Party are praising his new student loan relief program as a win.

In a nutshell, Americans earning under $125,000 per year will receive $10,000 in loan forgiveness. Earners below $125,000 per year who received higher education due to Pell Grants will get $20,000 in student loan debt “forgiven” from the government.

Despite the Biden administration arguing this policy is a win for the middle class, this will raise overall prices amid an ongoing recession and inflation nightmare. Furthermore, 13 states could possibly end up taxing the student loan debt that individuals have forgiven.

This week, Mississippi was the very first state to come out and confirm that any student loan debt its residents have waived by the federal government will, in fact, be taxed.

A Major Announcement From Mississippi
Americans living in Mississippi and receiving loan forgiveness from Biden’s new program should expect their taxes to increase in 2023. The practice of taxing forgiven debts stems back to state governments’ consideration of forgiven debt as income.

Naturally, this isn’t something being announced by the president or his allies. Mississippi may not be an outlier in deciding to tax this debt either.

Additional reports indicate that Wisconsin and Arkansas governments are debating amongst themselves whether or not to tax the forgiven student loans of their state’s residents.

In Wisconsin, its forthcoming two-year budget plan will address the possibility of implementing this tax. Meanwhile, Arkansas officials revealed a decision will be made about this matter within the next several days.

Americans in other states that could tax forgiven student loan debts may not be totally off the hook either.

No Free Lunches
The newfound attention going towards taxation of waived student loan debt follows the GOP’s warnings about Biden’s student loan relief program.