The White House remains silent on the issue regarding President Biden’s half-trillion dollar decision to cancel $10,000 to $20,000 in federal student loan debts under the student loan handout plan.
The public demands an answer from the White House concerning a possible tax increase to pay for the student loan handout plan expenditures. The student debt handouts will have inflationary effects that will likely fall to the taxpayers through a necessary tax increase to pay as the estimated cost of at least $300 billion up to $600 billion will be added to the $31 trillion existing U.S. debt.
White House silent on whether tax increases are necessary to pay for $300,000,000,000 student loan handout https://t.co/KKskmKeP2Y
— Fox News (@FoxNews) August 26, 2022
Several news organizations have tried to connect with the White House regarding the possible tax increase due to Biden’s student debt handouts.
Fox News Digital also asked the administration about the National Taxpayers Union Foundation’s new analysis about the estimation of the student loan handout, which will cost an additional $2,000 to an average U.S. taxpayer. The Foundation also mentioned that it is necessary for the federal government to figure out a way to make up for the given loans in the future, and they will be choosing between spending cuts or tax hikes.
The White House fails to respond to the new organization’s questions about the report or if it considers a future tax increase to make up for the student debt handouts.
White House press secretary Karine Jean-Pierre at the daily White House briefing later on gave a brief report regarding the issue. “We actually achieved $350 billion in deficit reduction, and this year it’s projected, by the end of the fiscal year, to be a $1.7 trillion deficit reduction,” according to her.
In addition, administration officials also pointed out that the cost of Biden’s student loan handout cannot be fully accounted for since the number of borrowers who will take advantage of the opportunity remains uncertain. Aside from that, the number of individuals who will pay back their debts in full also remains uncertain.
“All of this, when it comes to costs, will also depend on how many of the loans canceled were actually expected to be repaid,” said Jean-Pierre.
