Summary: In response to the Employer Participation case, Negatives will argue that this is merely another subsidy for the rich that we don’t need.
Released: Filed Under: NCFCA Policy
About "Employer Participation (NEG)"
The AFF case enacts a bill currently pending in Congress that creates tax deductions for employer contributions to an employee’s student debt (similar to tax free contributions made currently to employee 401(k) retirement accounts). Its theory is that creating this rule will incentivize employers (who will get a tax break) to make student debt reduction part of their employee benefits package, helping graduates get out of debt and helping the federal government get paid back for all that borrowed money that sometimes folks have trouble paying back.
Negatives will argue that this is merely another subsidy for the rich that we don’t need. First, you have to be working to get employer debt relief. But the people who need help the most are the ones not working. They could be unemployed due to hard economic circumstances or because they couldn’t finish their education and now have big debt and no degree, and therefore no pathway toward getting a job to pay the debt back. There are also lots of Status Quo programs to help (all) people pay off or manage student debt, so there’s no need to create yet another program. New statistics show these programs, and changing economic trends, are already working to solve the student debt problem today. Creating new tax breaks to pay down student debt at taxpayer expense will only create incentives for students to run up more debt and make worse the harms AFF was trying to solve.
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