By David Brunori, Forbes
The worst tax idea of the month comes out of Michigan, where legislators “determined to do something, somewhere, somehow” proposed a tax credit for student loan payments . Under the proposal (SB 408 ), graduates of Michigan universities, both private and public, would receive a tax credit equal to 50 percent of their student loan payments if they live in the state.
high education costs
Hasn’t the government done enough to mess up higher education finance? I know the sponsors of this inanity are well meaning. They always are.
But providing this credit is wrong for several reasons. First, the benefits will inure to upper-income folks. Upper-income people go to university more than hoi polloi.
I am not sure why they need the help. Second, the legislators are kidding themselves if they think the tax credit will provide an incentive for graduates to stay in Michigan.
Read the full article by David Brunori, Forbes.
