During the last 25 years, there was a mass shortage of petroleum engineers. Wasn’t sexy. Few people were going into the field. what happened? Companies trained their own, salaries sky rocketed, problem solved. Silicon valley does not need government to train their workforce. Their tax avoidance is sufficient. Does it bother you that a company issued stock option is never taxed as income? What a boondoggle.
So he wants to hugely tax those who worked their assess off on top on repaying their own loans and then socialize the costs for those who failed, which is just another layer of tax for those who work hard
It is taxed - when you realize the gain.
The idea that the government should train Madison Avenue’s advertising executives or Goldman’s analyst or UPS’s drivers or Taco Bell’s managers or Google’s lawyers is lost on me. The current system has created a protected academic class to the detriment of everyone else. Forgiving student debt is an unauthorized expenditure by the executive branch and a lawsuit should be filed. Wait, now that we are down to 8, probably won’t find much success. In our lifetime, everyone will regret allowing the executive branch to have so much power. Just wait until it’s not your guy in there.
Well on the other hand, if you can really get these guys to pay 6.5% to 8.0% yield for 25 years when the 10y treasury is 1.5%, you probably made money, even if they never repay the principal.
The value of the option is never taxed. Still not taxed when excercised. If the stock is higher than strike when you sell the stock, you pay the difference in capital gains tax. If the option expires worthless, you get to play for free. That’s my understanding. Were you asking a question or making a statement? If a company were to pay you with an option on a different company’s stock, you would pay ordinary income tax on the value of the option. And then capital gains tax on any gains.
The Federal student loan program is a huge loser because of the nonpayers. The accounting never records the default or writes down the loss. Maybe when the borrower dies. Not sure. There is a very low cap on how much money can be deducted from wages, so student loans have always been essentially allowed to default even though they technically can’t be cleared in bankruptcy. I wish people would know how messed up the program really is.
Fantastic reference STL.
Judge Smails’ poem would be appropriate for this board:
It’s easy to grin
When your ship comes in
And you’ve got the stock market beat.
But the man worthwhile,
Is the man who can smile,
When his shorts are too tight in the seat.
Look how much we were able to produce when most of the population couldn’t even read. Why have public education at all.
^ I’m not sure those benefits continue as the average education creeps higher. I think we are at the point where we are just educating smarter baristas, which is a problem. You don’t inherently create a better job by educating someone, you just raise the bar for entry. Sure, at the lower end of the education scale you might get societal advantages of increasing levels of general education, but having these highly specialised university educated folks doesn’t really increase productivity. In fact, its probably negative to society economically to educate these folks. Furthering subsidies to students just increases this distortion. Society needs plumbers, not liberal arts students.
^Geo = itera?
Nah, just a realist.