Old system: run out of money in college, phone home, mom and dad send more money. Mom and dad go broke.
New system: College students get free education. Mom and dad pay huge new taxes including for people they never met (new college student illegals who arrived last week, Belushi character party guy types who fear seven years of college is going down the drain).
Mom and dad go broke. Sounds familiar.
I have a better idea: make the universities pay for the crappy degrees. Tax university funds
For White kids too?
Bernie must be slipping...
Wait. So I get mine back retroactive from 40+ Years back with interest, right?
(Commie scum )
The normal crap that liberals love to do, not only hand out free federal dollars, but tax those who generate the core of our economy. Only bright spot is that it’d hit public employee funds the hardest, the darkest part is that public employee retirement funds would just seize our property to pay promised benefits.
Senile Sanders wants the students’ neighbors to pay the tuition.
One thing that neither of these economic “superstars” is mentioning (because they probably don’t have Clue #1 about it) is that cancellation of indebtedness without going through bankruptcy is taxable income. So someone who gets $100,000 of student loan debt cancelled is now going to have an additional $100,000 of income - all in one year. That’ll push up the marginal tax rate on ALL of their other income, for both federal and state income tax purposes. Note that if they cannot pay their current payments (of maybe 0.5% - 0.75% of the loan per month), they sure aren’t going to be able to come up with 30% of the entire balance in one shot. They will then be in the unenviable position of underpaying their income tax, and being subject to underpayment penalties and interest. All of the penalties and interest will continue to accumulate...just like interest on a student loan.
Oh, and their credit will be utterly ruined - first by the debt cancellation and, second, by having a huge tax debt owed to the IRS and their state. Further, tax authorities will not hesitate to garnish wages - and that looks just wonderful to employers, credit reporting agencies and banks.
So, once again, a Socialist idea that sounds wonderful (for some people) on the surface will actually result the contrary result - it’ll ruin all of these people, just faster than they’re being ruined now.
The best thing that the government can do regarding higher education is to start getting out of it now, with the goal of being completely out by 10-15 years from now. After all, it is government grants and loan guarantees that has allowed the universities to collude with each other for the last 45 or so years in jacking up tuition and fees at roughly twice the annual inflation rate. Oh, and the second best thing that the government can do is to prosecute the university boards of directors, officers and deans for the single most massive criminal conspiracy to defraud the American public in all of history. Send them to jail; heck, dig up the dead ones who started the whole multi-trillion dollar rip-off and send their rotting carcasses to jail, too.
I live in a state (Georgia) that has subsidized public college based on your high school GPA. The higher your GPA, the more $$ you get towards tuition.
The unintended consequence is that it is next to impossible to get into GT and UGA because so many more kids CAN go to college. It’s not a terrible unintended consequence IF admissions are based on merits. That is a big IF. I know three kids who just graduated that had the max APs, a perfect GPA, and 35-36 on ACT (or 1550 plus on SAT) who got waitlisted at GT.
It’s actually a pretty fair model. Work hard in HS and pay less for college.
What in the world do the feds have to do with it? The public colleges are run by the states. Let them create their own Petri dishes.
NO debt for grad school should be forgiven, nor should grad school be free.
But we all know this is just BS pandering to get votes.
So if you paid it off, you’re a SUCKER!
DANGER! DANGER! She is going after wealth now, not just income. Once you open the door to a tax wealth while you're still alive, you've all but sealed your and your children's fate to be a slave to the gov't forever.
I saw some LIEberal bozo on the news last night bragging that he has not yet payed off his 20 year old student loan!
In Warren’s plan, each of the households would have to average over $1 billion for their taxes to add up to 1.6 billion.
Clunk!!! That was the sound of the states dropping subsidies from their state universities since the Federales will pay the whole list price. Why just have local taxpayers subsidize them when you have 49 other states to do it too?
They want to forgive trillions in debt but don’t want to spend 20 billion or so for the border wall. Make the students pay the debt off by public service. Less talk,more block! Make them work building the wall.
Tax only the wealthy, huh?
When the Income Tax began in 1913 the rate was 1% on those making more than $3,000 net personal income, i.e. $30 in income tax.
$3,000 in 1913 was the equivalent of $76,599.
“Congress enacted an income tax in October 1913 as part of the Revenue Act of 1913, levying a 1% tax on net personal incomes above $3,000, with a 6% surtax on incomes above $500,000.”
https://en.wikipedia.org/wiki/History_of_taxation_in_the_United_States#16th_Amendment
I wonder if those of us who paid off student loans will get reimbursed?
What does that even mean. What if they stop speculating?
