DAY FOUR: White House refuses to say who will pay for Biden $500,000,000,000 student loan handout

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The White House remains silent about how it plans to pay for President Biden’s decision to cancel between $10,000 and $20,000 in student debt for some Americans or whether future tax increases will be needed to cover the proposal that, by some estimates , costing more than $500 billion.

Despite the policy disclosure earlier this week, government officials are yet to clarify how the proposal will be paid for in the long run. Since the current plan calls for the government to cancel the debt, this means taxpayers will likely have to pay much of the principal and interest will be deposited on top of the nearly $31 trillion in existing U.S. debt.

Fox News Digital again asked the administration how it plans to pay the alms.

The White House did not respond to the question, nor did it anticipate future tax hikes to make up for Biden’s student loans.

NEARLY 100 REPUBLICANS CLAIM PELOSI HOLD BIDEN RESPONSIBLE FOR $500B STUDENT DEBT

Biden announced plans on Wednesday to forgive $10,000 in student debt for borrowers earning less than $125,000 a year. (AP)
(AP Newsroom)

Government officials, while not commenting on how the additional spending will be offset, have argued in recent days that the national deficit under Biden’s supervision is already declining.

“We’ve actually hit $350 billion in deficit reduction, and a $1.7 trillion deficit reduction is projected this year before the end of the fiscal year,” White House press secretary Karine Jean-Pierre said at the daily briefing. the White House.

Administration officials have also argued that the cost of Biden’s student loan cannot be fully justified, as it is unclear how many borrowers will choose to take the opportunity. They say it remains unclear how many individuals would have repaid the full amount of their loans over time.

“All this, since it comes to costs, also depends on how much of the canceled loans would actually be repaid,” says Jean-Pierre.

DEMOCRATS OPPOSED AGAINST BIDEN STUDENT LOAN HANDOUT SUPPORTED PREVIOUSLY SUPPORTED SEPARATE CANCELLATION PROOF OF DEBT

However, the National Taxpayers Foundation disagrees. The group released an analysis earlier this week that estimated that if student loan disbursements add nearly $330 billion to the deficit over the next decade, as a budget model of the Wharton School of the University of Pennsylvania of Business claims, the average cost per taxpayer will be $2,085. But that may be on the low side. The responsible budget committee estimates the cost of the alms at between $440 billion and $600 billion.

The fiscally conservative think tank, in particular, says that in the future the federal government must find a way to make up for the waived loans, be it through spending cuts or tax hikes. Much of that, the group predicts, will go through the latter.

WASHINGTON, DC - AUGUST 25: Student loan borrowers hold a rally in front of the White House to celebrate President Biden's cancellation of student debt and begin the battle to cancel any remaining debt on August 25, 2022 in Washington, DC.  (Photo by Paul Morigi/Getty Images for We the 45m)

WASHINGTON, DC – AUGUST 25: Student loan borrowers hold a rally in front of the White House to celebrate President Biden’s cancellation of student debt and begin the battle to cancel any remaining debt on August 25, 2022 in Washington, DC. (Photo by Paul Morigi/Getty Images for We the 45m)
(Paul Morigi/Getty Images for We the 45m)

The data showed that the sum was significantly higher for higher income classes, but still moved towards the middle class.

For example, according to the group, taxpayers earning between $1 and $50,000 annually would pay more than $158. The cost for those earning between $50,000 and $75,000 is estimated at $866, and $1,477 for individuals earning $75,000 and $100,000, while those earning between $100,000 and $200,000 face more than $3,150. Earners who withdraw $200,000 to $500,000 would pay nearly $9,950.

“Some may argue that taxpayers bear the cost of canceling student debt. But the $329 billion cost of canceling student debt would be $329 billion previously borrowed from the federal government and would not return to the treasury,” according to the analysis of the organization. “Policymakers will have to make up for that gap in the future with cuts in government spending, tax hikes, more borrowing, or a combination of these.”

Democrats claim that the national deficit under Biden's supervision is already falling.  (Photo by Drew Angerer/Getty Images)

Democrats claim that the national deficit under Biden’s supervision is already falling. (Photo by Drew Angerer/Getty Images)
(Photo by Drew Angerer/Getty Images)

Biden announced plans to forgive on Wednesday $10,000 in student debt for borrowers earning less than $125,000 annually. Pell Grant recipients will receive $20,000 in debt, provided their income is below the $125,000 threshold. Government officials argue that no single person or household in the top 5% of earners will benefit from the decision.

The White House also extends a pause on student loan payments until the end of the year. Coinciding with the announcement is a new proposal from the Department of Education that would allow borrowers to limit the repayment of undergraduate loans to 5% of their monthly income, increasing the cost to taxpayers of the alms.

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Penn Wharton’s budget model estimates that the total cost of the proposal, taking into account loan tolerance and the new repayment ceiling, could exceed $1 trillion.


The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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