Our opinion: Government can ruin a good thing
Teachers, social workers, nurses, and other workers who fulfill critical roles in our economy have been eligible for some types of student loan forgiveness, but Pennsylvania has been treating debt relief as income and taxing it accordingly.
This meant that someone who had $50,000 in debt forgiven would have been hit with a $1,535 tax bill from the state Department of Revenue.
That’s flat-out wrong and the administration of Gov. Tom Wolf rightly announced recently that the forgiven debt would no longer be considered taxable income.
The governor explained, “These people have chosen to serve the public, and often in lower-paying fields, because they want to make a difference. They don’t have thousands of dollars lying around to pay a one-time tax bill. So it’s wrong to take what should be a blessing and turn it into just another burden.”
It’s nice to see that even a tax-and-spend liberal like Wolf has limitations when it comes to government taking what doesn’t belong to it.