Lawmakers could address this in the 2023 session but it remains unclear if there’s an appetite for such a move in the GOP supermajority.
Mississippi is the first, but possibly not the only, state that plans to tax individuals who take advantage of the President’s recently proposed student loan debt forgiveness plan.
Just last week, President Joe Biden announced that people with student loans could see forgiveness on up to $10,000-$20,000 depending on the type of loan. The plan would pay off up to $10,000 of student loan debt, per borrower, for those who make under $125,000 annually. For married couples who file jointly and make under $250,000, the same relief could be made per person.
While the debt forgiveness is protected from federal taxes through the American Rescue Plan Act for loans from 2015 to 2021, 13 states are considering charging a state tax, this according to the Tax Foundation.
“In the coming weeks and months, we are likely to see additional states issue guidance on the treatment of discharged student loan debt, and perhaps even adopt legislative fixes, causing this list to dwindle further,” said the Tax Foundation.
Lawmakers in Mississippi could take the issue up in the 2023 legislative session when they return in January. It is unclear at this time as to whether there is any appetite from legislators in the Republican supermajority to amend the necessary codes regarding this plan from President Biden.