I understand tax vs GAAP. I passed the CPA exam.
by EricCartman (2024-02-25 22:36:30)

In reply to: Depends. Doesn’t really matter. Just a tax vs book differenc  posted by gregmorrissey

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However, that difference is probably what’s at play here.

At the end of the day, PPP was designed to be forgiven. The program was bipartisan and probably flawed due to us pushing it out quickly during a pandemic.

In contrast, student loans were originated under the assumption that they would be paid back. Biden tried to push for forgiveness and lost in court. Biden is forgiving loans anyways, like a true modern day Andrew Jackson.

You continue to bring up favorable treatment under the tax code as evidence of hypocrisy. That’s wrong, since the tax code changes are voted on by congress legally. And the code has been used to influence behavior for decades. So people respond to changes in the code, because that’s entire point of the code: to nudge people to save (401ks), or save for college (529), or buy a home (mortgage interest deduction), or have kids (child tax credit), or develop job skills (EITC), and on and on and on.

If your argument is that the code plays favorites, then the alternative is a flat-tax with zero deductions, credits, or exemptions. You game for that? I am.


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