One million people in North Carolina currently have an average of almost $40,000 in student loan debt -- and they just learned that they'll have to pay taxes on their forgiven student loans. North Carolina is going to force its residents to pay up to $1,000 in income tax on their forgiven student loans. Astonishingly, four more states could follow suit: Arkansas, Minnesota, Mississippi, and Wisconsin.
Sign the petition to tell the North Carolina Legislature to exempt student loans from state taxes!
Biden's new student loan forgiveness plan, which will cancel $10,000 ($20,000 for those with Pell Grants) is a drop in the bucket when it comes to how much most people owe, but people still need it. It should come as a welcome relief. Forcing people who qualify for student loan forgiveness to pay income taxes is a slap in the face to people who already need a break and thought they were finally getting one.
Ironically, North Carolina is happy to embrace corporate tax cuts. Businesses across the state received millions from the federal Paycheck Protection Program -- and conveniently, these corporations were excused from paying state taxes.
At least 13 states are not required to uphold the federal tax exemption, but some states -- like New York and Hawaii -- have already made sure their residents who qualify for the debt forgiveness won't have to pay a state tax bill. Why can't all states do this?
Sign the petition to tell the North Carolina Legislature to exempt student loan borrowers from state taxes!