

Simple Tax Idea (hack) For Students And Businesses - BrandonWatson
http://www.manyniches.com/entrepreneurs/simple-tax-idea-for-students-and-businesses/

======
JshWright
How is this anything other than a complicated way of getting the government to
subsidize 100% of higher education costs?

~~~
BrandonWatson
When you put it like that, I sound like a socialist, and not the unrepentent
capitalist I hold myself out as.

This certainly could be seen as no different than the government taking the
tax receipts and simply paying down your debt for you. In that case, you are
right, they are subsidizing, but the interest is being paid to the debt
holders, so at least you retain some semlance of a business transaction.
Perhaps the debt holders would reduce interest rates knowing that they have
first lein on income streams.

The current plans have such things as debt forgiveness, which could
potentially incent the wrong behavior, as opposed to this idea which would (in
theory) incent you to get a job paying down debt as quickly as possible.

~~~
anamax
> When you put it like that, I sound like a socialist, and not the unrepentent
> capitalist I hold myself out as.

If the shoe fits...

There's no reason to subsidize college education. The recipients get the
benefits, whether they are economic or non-economic, so they should pay the
costs.

The other problem with subsidizing college educations is that the colleges see
the subsidies and raise their prices.

