Crowdsourced Bailout?



Who is stupid enough to pay off random people's debt?

Sounds like they are going to do what debt collection agencies do (buy the right to collect debts in bulk of random people) and then just not try to collect it.
 
From that article:

A person’s debt can’t truly disappear with no consequences. The amount forgiven is technically income—“cancellation of debt income,” in Internal Revenue Service terms. It’s a dollar-for-dollar conversion, says Robert Willens, a tax expert based in New York. For example, a person with regular income of $50,000 who has $25,000 in credit-card debt discharged will be taxed on April 15 as if she earns $75,000.

“There’s not any doubt about the tax outcome at all,” says Willens. “That’s almost always the case with debt discharges—you wind up with this tax problem that almost always mitigates the benefit of the discharge.”
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Tax on cancelled debt? Holy fuck, you guys get taxed on everything, don't you?
 
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