Joe Biden's student loan relief plan could trigger up to $1,100 in state-level taxes in at least 13 states because the $10,000-$20,000 in forgiveness could count toward an individual's income when filing their taxes.
Some of the states with the largest poverty levels, including Arkansas, West Virginia and Mississippi are among the states where individuals and couples could see increased tax burdens due to the student loan forgiveness.
The Tax Foundation think tank notes that 13 states currently would consider this relief income, but the states that might impose taxes on this student loan relief could shrink if legislative or administrative alterations are made.
Additionally, several conservative state's Attorney Generals are considering launching legal challenges against the administration's forgiveness plan.
'We're actively looking into legal options to halt the Biden Administration's abuse of power and assault on working-class Americans,' Missouri Attorney General Eric Schmitt told Fox News.
The estimate in additional taxes from the relief ranges from $307 in Pennsylvania on the low end to $1,100 in Hawaii on the high end, according to the nonprofit think tank analysis.
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