Source: Sean Rayford / Getty
Gov. Roy Cooper of North Carolina wants the General Assembly to approve legislation that would exempt people from state income tax on the student loan forgiveness that President Joe Biden announced last month.
The White House said the value of forgiveness —up to $20,000 for some—is exempt from federal income tax, citing the 2021 American Rescue Plan law While this is the case, it appears that North Carolina is one of 12 states where sums would continue to be subject to state tax without modification.
“Republican legislators were quick to help businesses and should now fix this fundamental unfairness for many hardworking people who will get hit hard by this,” Cooper said in a Wednesday news release.
