[a fool in paradise]

Of course they will still pay income tax that year on their $50,000 debt being cleared. If not, why not? Anyone else with debt pays income tax on it when it is “forgiven”.

[Dilbert San Diego]

True. Debt relief is considered taxable income to the debtor.

So wouldn’t it take legislation, to change the tax code so that this loan forgiveness doesn’t trigger a taxable event for these borrowers???? Even if Joe can somehow do an executive order to cancel debt, does he have the power and authority to change all of the legal repercussions of such a decision???

[Vermont Lt]

I wonder if the people who bought govt bonds that were used for this will still be paid their interest? Or will they be able to take the complete loss of income from the bond to offset their capital gains?

(I understand there were not dedicated bonds for this—but that might be a better, people will know they are throwing away their investments.)

[gogeo]

Well, they’ll have to kick some upstairs to the ‘big guy.’