Would a Fair Tax potentially solve the Student Debt Problem for Graduate Students?

[Gnostic.Spirit]

This would provide incentive to graduates with high debt to pay off their student loans quicker. High Income earners would only be spending 14.5% (According to one proposed flat tax plan by Senator Rand Paul) on their taxes and this would provide extra income to be spent on paying back student loans without being punished. What do you all think?

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[BidingMyTime]

yes, but a "fair tax" has only been talked about for 30 years. The powers that be will never pass it.....too many accountants & IRS workers would lose their jobs.

 

[Digsbe]

They could start by letting us deduct the student loan interest from our income on our taxes...

I'd welcome any kind of tax break though.

 

[Old Timer]

This would provide incentive to graduates with high debt to pay off their student loans quicker. High Income earners would only be spending 14.5% (According to one proposed flat tax plan by Senator Rand Paul) on their taxes and this would provide extra income to be spent on paying back student loans without being punished. What do you all think?

You realize the flat tax is *****ic. The sole and single purpose of the flat tax is a back door way to reduce the size and scope of government. If you starve the beast, it will die. in the mean team if you come right out and say you will cut X, Y and Z, you will never the country to go along.

 

[BidingMyTime]

Nonsense, OldTimer, our government is already trillions of dollars in debt. Assuming for the sake of argument that the FairTax would cut income for the government (and this is debatable), there is absolutely no reason to assume to that government would cut spending just because their income was cut. In fact, history proves the opposite, government income has absolutely no bearing on government spending, which is why the government has trillions of dollars of debt.

 

[W19]

6 tax brackets and no itemized deductions whatsoever will fix the tax code... 5, 10, 15, 20, 25 and 30%.

<50k----------------------------------5%
50k-100k----------------------------10%
100k+ to 250k----------------------15%
250k+ to 1 mil----------------------20%
1 mil to 5 mil------------------------25%
>5 mil-------------------------------30%

 

[Old Timer]

Nonsense, OldTimer, our government is already trillions of dollars in debt. Assuming for the sake of argument that the FairTax would cut income for the government (and this is debatable), there is absolutely no reason to assume to that government would cut spending just because their income was cut. In fact, history proves the opposite, government income has absolutely no bearing on government spending, which is why the government has trillions of dollars of debt.

Is debt bad? People on this board go in debt to the tune of 200K. They get a job that pays 120K for 40 years. That means they get 4.8 million in income. Is it worth it? Debt in and of itself is not bad. It's what you go in debt for. As for my comment, I meant to say politicians who support a fair tax. Most people support whatever they think is best for them whether it is or it is not. You realize you need to look at your net tax VS income. Once they take away all of your deductions I get screwed with every flat tax proposal out there.

 

[confettiflyer]

OldTimer is right, debt isn't inherently bad. If you can borrow money and grow your economy greater than the interest rate charged, then you should incur it.

If you let infrastructure crumble (economy killer) and prioritize debt retiring, you're in trouble.

Debt is only bad if you can't pay it.