Simple Tax Idea (hack) For Students And Businesses

This certainly could be seen as no different than the government taking the tax receipts and simply paying down your debt for you. In that case, you are right, they are subsidizing, but the interest is being paid to the debt holders, so at least you retain some semlance of a business transaction. Perhaps the debt holders would reduce interest rates knowing that they have first lein on income streams.

The current plans have such things as debt forgiveness, which could potentially incent the wrong behavior, as opposed to this idea which would (in theory) incent you to get a job paying down debt as quickly as possible.