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US Politics Mega-thread - Page 3764

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Now that we have a new thread, in order to ensure that this thread continues to meet TL standards and follows the proper guidelines, we will be enforcing the rules in the OP more strictly. Be sure to give them a complete and thorough read before posting!

NOTE: When providing a source, please provide a very brief summary on what it's about and what purpose it adds to the discussion. The supporting statement should clearly explain why the subject is relevant and needs to be discussed. Please follow this rule especially for tweets.

Your supporting statement should always come BEFORE you provide the source.


If you have any questions, comments, concern, or feedback regarding the USPMT, then please use this thread: http://www.teamliquid.net/forum/website-feedback/510156-us-politics-thread
brian
Profile Blog Joined August 2004
United States9625 Posts
August 24 2022 14:59 GMT
#75261
Do people still need to pay income tax on debt forgiveness? that’s going to be a pretty steep bill for taxes that everyone wasn’t expecting.
JimmiC
Profile Blog Joined May 2011
Canada22817 Posts
August 24 2022 15:22 GMT
#75262
--- Nuked ---
KwarK
Profile Blog Joined July 2006
United States42973 Posts
August 24 2022 15:30 GMT
#75263
On August 24 2022 23:59 brian wrote:
Do people still need to pay income tax on debt forgiveness? that’s going to be a pretty steep bill for taxes that everyone wasn’t expecting.

Yes.
ModeratorThe angels have the phone box
Mohdoo
Profile Joined August 2007
United States15714 Posts
August 24 2022 15:39 GMT
#75264
On August 25 2022 00:22 JimmiC wrote:
Show nested quote +
On August 24 2022 23:40 Mohdoo wrote:
On August 24 2022 12:57 PhoenixVoid wrote:
There was a special election to fill in the vacancy for the NY-19 House seat (held by a Democrat) which is a swingy seat that's went to Obama twice, Trump, and then Biden. Lot of eyes on it because it's seen as a bellwether for the midterms and the Republican candidate was a really strong pick who was outspending the Democrat significantly. Expectations were for a flip and the seat's partisan lean is R+4

The Democrats held the seat despite polling showing the Republican ahead by 8-10 points. The most recent House special elections after the Roe overturn showed Democrats outperforming their typical lack of interest in a midterms.

NE01 - Trump +15 -> R+5

MN01 - Trump +10 -> R+4

NY23 - Trump +11 -> R+6

Election Twitter says this isn't really the kind of environment conducive to a midterms red wave, which is kinda stunning considering the lousy sentiment over the economy with inflation, Biden's approval at 40%, and the midterms almost always resulting in losses for the party of the president.


Biden is getting really lucky with gas prices. We'll see how things go at the actual election though.


Is not more accurate to say that he was very unlucky with gas prices before? This is not a blip down, it is a return to more "normal".


Things going from good to terrible to kind of bad benefits the president because people feel relief
LegalLord
Profile Blog Joined April 2013
United Kingdom13775 Posts
August 24 2022 15:42 GMT
#75265
Thankfully people remember that gas prices are $1 less than two months ago more than they remember that it's $2-3 more than a year ago. Good for midterm prospects.
History will sooner or later sweep the European Union away without mercy.
StasisField
Profile Joined August 2013
United States1086 Posts
August 24 2022 16:47 GMT
#75266
On August 25 2022 00:42 LegalLord wrote:
Thankfully people remember that gas prices are $1 less than two months ago more than they remember that it's $2-3 more than a year ago. Good for midterm prospects.

Still upset gas prices are going back down I see.
What do you mean Immortals can't shoot up?
LegalLord
Profile Blog Joined April 2013
United Kingdom13775 Posts
August 24 2022 17:11 GMT
#75267
I mean, I can't complain about a pause in rising gas prices. I wouldn't be bragging about how good it is that gas prices are at a mere $4-5/gal though.

Household electricity prices are also reaching some seriously high levels - 1/6 of households are behind on their bills and it's not even winter yet. Absurd that we're still exporting our coal & LNG when US consumers are paying record prices.

One in six U.S. homes, or 20 million households, have fallen behind on their energy bills as power prices rise and inflation eats up incomes, Bloomberg reports, citing data from the National Energy Assistance Directors Association (NEADA), which has said this is the worst crisis it has ever documented.

In June, NEADA had already warned that “Electricity prices are expected to increase significantly this summer as result of rapidly rising natural gas prices, a primary feeder fuel for electricity and a warmer summer creating additional demand for electricity.”

A total of 19.9% of all U.S. households reported that they kept their home at a temperature that felt unsafe or unhealthy for at least one month in the last year, according to the Census Household Pulse Survey, covering April 27 – May 9, 2022, cited by NEADA at the start of this summer.

Now there will be “a tsunami of shutoffs,” Jean Su, a senior attorney at the Center for Biological Diversity, which tracks utility disconnections, told Bloomberg.

Electricity prices in the United States have surged in recent months due to the rise in natural gas prices, which briefly hit on Tuesday $10 per million British thermal units (MMBtu) for the first time since 2008. Natural gas has the largest share of U.S. electricity generation, so the rally in U.S. benchmark gas prices is driving up electricity bills, too.

Last year, the average nominal retail electricity price paid by U.S. residential electric customers rose at the fastest rate since 2008, increasing by 4.3% from 2020 to 13.72 cents per kilowatt hour (kWh), according to data from the EIA.

In July this year, the average price U.S. households have to pay jumped by 15% year over year, for the biggest annual rise in data since 2006, according to Bloomberg.

Source
History will sooner or later sweep the European Union away without mercy.
farvacola
Profile Blog Joined January 2011
United States18832 Posts
August 24 2022 17:12 GMT
#75268
On August 25 2022 00:30 KwarK wrote:
Show nested quote +
On August 24 2022 23:59 brian wrote:
Do people still need to pay income tax on debt forgiveness? that’s going to be a pretty steep bill for taxes that everyone wasn’t expecting.

Yes.

Depends on the circumstances, but generally yes, cancellation of indebtedness while solvent triggers income under section 108. However, programs like PSLF specifically exclude the forgiven amounts from taxable income, so something similar may be a part of the forgiveness here.
"when the Dead Kennedys found out they had skinhead fans, they literally wrote a song titled 'Nazi Punks Fuck Off'"
Acrofales
Profile Joined August 2010
Spain18050 Posts
August 24 2022 17:17 GMT
#75269
On August 25 2022 00:30 KwarK wrote:
Show nested quote +
On August 24 2022 23:59 brian wrote:
Do people still need to pay income tax on debt forgiveness? that’s going to be a pretty steep bill for taxes that everyone wasn’t expecting.

Yes.

I'm confused. Doesn't it depend a lot on how the debt was incurred? At least here in Spain it does. When my parents loaned me 50k to help buy a house, I had to explicitly tell the taxman that it was a loan, and then I didn't have to pay tax over it. Obviously my parents forgiving that debt I would then have to pay tax over it, as it is then no longer a loan, but a gift. However, my student loan was counted as income (although at the time that was irrelevant, because overall my income was low enough that it still fell in the tax-free bracket). So I already payed income tax over that, and if the government were to forgive that, I shouldn't have to pay income tax over it a second time. Right?
farvacola
Profile Blog Joined January 2011
United States18832 Posts
August 24 2022 17:23 GMT
#75270
On August 25 2022 02:17 Acrofales wrote:
Show nested quote +
On August 25 2022 00:30 KwarK wrote:
On August 24 2022 23:59 brian wrote:
Do people still need to pay income tax on debt forgiveness? that’s going to be a pretty steep bill for taxes that everyone wasn’t expecting.

Yes.

I'm confused. Doesn't it depend a lot on how the debt was incurred? At least here in Spain it does. When my parents loaned me 50k to help buy a house, I had to explicitly tell the taxman that it was a loan, and then I didn't have to pay tax over it. Obviously my parents forgiving that debt I would then have to pay tax over it, as it is then no longer a loan, but a gift. However, my student loan was counted as income (although at the time that was irrelevant, because overall my income was low enough that it still fell in the tax-free bracket). So I already payed income tax over that, and if the government were to forgive that, I shouldn't have to pay income tax over it a second time. Right?

Generally, student loans are not income in the US. Wherever there's a corresponding obligation to repay, the money received isn't taxable.
"when the Dead Kennedys found out they had skinhead fans, they literally wrote a song titled 'Nazi Punks Fuck Off'"
NewSunshine
Profile Joined July 2011
United States5938 Posts
August 24 2022 17:25 GMT
#75271
So forgiveness is at $10,000, but that goes up to $20,000 if you received Pell Grants during your education. It is, of course, being means tested at $125K, which is still fucking stupid. Just forgive $20-25K no questions asked, at that rate.

The payment pause is also extended once again, for the final time they say, to December 31st.
"If you find yourself feeling lost, take pride in the accuracy of your feelings." - Night Vale
Gahlo
Profile Joined February 2010
United States35159 Posts
August 24 2022 17:33 GMT
#75272
Little devil shoulder me is yelling at me for not taking loans when I went back to school last year.
Mohdoo
Profile Joined August 2007
United States15714 Posts
Last Edited: 2022-08-24 18:01:45
August 24 2022 17:57 GMT
#75273
this can't be the whole plan. the interest is such a giant red soft spot. that must be planned to change. 6% is insanity.

On August 24 2022 23:59 brian wrote:
Do people still need to pay income tax on debt forgiveness? that’s going to be a pretty steep bill for taxes that everyone wasn’t expecting.


yeah paying income tax on it would also be insane. I'll wait until we hear the full thing from Biden.
Mohdoo
Profile Joined August 2007
United States15714 Posts
Last Edited: 2022-08-24 18:01:51
August 24 2022 18:01 GMT
#75274
delete
LegalLord
Profile Blog Joined April 2013
United Kingdom13775 Posts
August 24 2022 18:01 GMT
#75275
Definitely a nice bit of forgiveness. Still don't know how much I'll be getting given that most of my loans were for grad school, but I guess we'll see as soon as the details come out.
History will sooner or later sweep the European Union away without mercy.
JimmiC
Profile Blog Joined May 2011
Canada22817 Posts
August 24 2022 18:12 GMT
#75276
--- Nuked ---
Fleetfeet
Profile Blog Joined May 2014
Canada2574 Posts
August 24 2022 19:09 GMT
#75277
I'd tend to trust Kwark on this one, but I'm interested to see the fine print.
farvacola
Profile Blog Joined January 2011
United States18832 Posts
August 24 2022 19:11 GMT
#75278
According to the WH factsheet, the forgiven amounts will not constitute taxable income.
"when the Dead Kennedys found out they had skinhead fans, they literally wrote a song titled 'Nazi Punks Fuck Off'"
JimmiC
Profile Blog Joined May 2011
Canada22817 Posts
August 24 2022 19:40 GMT
#75279
--- Nuked ---
Mohdoo
Profile Joined August 2007
United States15714 Posts
August 24 2022 19:40 GMT
#75280
Oh shit yeah baby.

So not only are they recalculating discretionary income (which determines how much you pay in income based repayment plans, which are what most people do), but you only have to pay 5%, down from 10%. And you're all square after 20 years. This is amazzzzzing.

That and my wife and I will in total receive 40k from this. Booom babbbbyyyy. Stoked for this.
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