Quote:
Originally Posted by RickFLM4
How exactly is it a double dip?
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Simple:
- Government profits off the loans via loan interest.
- Government also profits off the increase in lifetime earnings via increased tax revenue due to wage increases and reduced reliance on welfare programs.
Meanwhile, government bears unusually low risk since the loans can't be discharged in bankruptcy.
When you borrow for a mortgage the bank doesn't get to simultaneously charge you interest on the loan and tax you on the increased equity since you've owned the home...