Posted on 05/20/2019 7:49:33 AM PDT by Diana in Wisconsin
I hope the IRS shows some interest in these graduates.
This is quite generous of him. However it does bring up certain questions. Such as, is this going to be considered debt forgiveness by the IRS, so what these graduates get a big tax bill for debt forgiveness? Is this officially considered a gift for which gift taxes will be due?
Not to rain on the parade, but this sort of transaction will keep the CPAs and lawyers busy, in order to make sure everything is done legally.
Yay, Smith. Way to show these young men the value of honoring debts and taking personal responsibility. Idiot.
I saw a Forbes article that said the students will NOT have to pay any taxes on this ‘gift.’
But, you know - if you or I cheat Mother Government out of one confiscated DIME, we’ll hang at dawn, LOL!
Now, now, I think federal tax laws will regard the repayments as gifts. Why make the students tax debtors?
Not to be a wet blanket, but what about the kids and their families who saved and worked, pursued grants and scholarships, and thus graduated with little to no debt thanks to their hard work, budgeting and savings discipline?
I read that as saying this money (read "grants") will come out of a charitable trust (already created in the name of his family).
Not that such makes it any less wonderful.
That said, those students who worked their way through school so as to not need student loans are not rewarded for their industriousness while those kids who ran up big loan balances while partying weekends away at the frat house get a huge break.
Gift taxes are real.
Zeroing out the loans is a bad idea. “Free” is never truly appreciated and it teaches the wrong lesson in general.
If he was going to help at all and still teach these pampered millenials a lesson, he should have said: “I will pay off all of your student loans with the exception of $1500.00. You borrowed the money, and you should have some skin in the game paying off your loans. That is a life lesson that you must learn—NOTHING comes for free.”
Even if they have to pay taxes, this is awesome for them. I love people personally doing this. More should. Get the government out of college loans. This guy is a hero. I like that it was done after the students did the hard work.
Life isn’t fair. Same thing could be said about the kids born into bill gates family. Talk about being born with a home run.
My thoughts exactly.
I worked at a cannery in Alaska to earn college money. Also washed dishes in my frat house to pay for my room and board. Did other stuff, too.
Never had a loan, grant or scholarship (was offered a nice scholarship by Reed College but refused to attend that crazy place).
Remember when Oprah gave away all those cars - except the people could not afford the gift tax on them. :D
They should benefit too.
They shouldn't be ignored because they acted responsibly.
That’s one way to get cheap applause.
“That said, those students who worked their way through school so as to not need student loans are not rewarded for their industriousness while those kids who ran up big loan balances while partying weekends away at the frat house get a huge break.”
Gonna create some resentment.
No gift taxes on unlimited college tuition assistance, I believe.
So to most commentators here this is a bad thing because; not everybody gets this gift (socialist bull shit); or this man cannot be allowed to do what he wants with is own money (more socialist bull shit); or receiving kindness somehow is a bad thing and sends the wrong message to these young people; or the government tax these gifts (as if they don’t tax everything already? Wow, just wow!
This thread offers more than a few candidates for the role of the new Grumpy Cat.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.