Sanders and Progressives unveil bill to cancel student debt
WASHINGTON (AP) – Days before the first Democratic presidential debates, Senator Bernie Sanders and House Progressives unveil legislation canceling all student debt, going beyond a proposed signing by Senator Elizabeth Warren as two jockeys for the support of the liberal base of the party.
By canceling all student loans, Sanders says the proposal solves an economic burden for 45 million Americans. The main difference is that Warren’s plan takes into account the income of borrowers, canceling $ 50,000 in debt for those who earn less than $ 100,000 a year and affecting about 42 million people in the United States.
Both candidates have questions about how to pay for it all, as well as their proposals for free tuition at public colleges and universities. But the struggles of ideas highlight the rivalry between senators who have made the fight against economic inequality the cornerstones of their presidential campaigns.
“In a generation hit hard by the 2008 Wall Street crash, he forgives all student debt and ends the absurdity of sentence an entire generation to life debt for the ‘crime’ of having a college education “Sanders said in prepared remarks. for delivery at a press conference Monday with the proposal’s sponsors, Representatives Ilhan Omar, D-Minnesota, and Pramila Jayapal, D-Washington.
His bill and Warren’s plan – proposed in a Medium article earlier this year – are part of their wider appeal to liberal voters with a series of progressive political ideas on issues such as health care, technology and education. The dynamic seems certain to play out this week during the first Democratic debates. Twenty candidates are set for the showdown, with Warren on the lineup on Tuesday and Sanders appearing a day later. The events come as there are signs that Warren is cutting Sanders’ support from the left.
Sanders’ effort to outbid student loans, called the College For All Act, would write off $ 1.6 trillion in debt and save the average borrower about $ 3,000 a year, according to documents obtained by the ‘Associated Press. The result would be a stimulus that would allow millennials in particular to invest in homes and cars that they could not otherwise afford. It would cost $ 2.2 billion and would be paid for – and then some – by a series of taxes on things like trading in stocks, bonds and derivatives, according to the proposal.
Universal debt relief is designed in part around the idea that it would primarily benefit Americans who cannot afford tuition without loans, according to a senior Democratic official who requested anonymity because legislation no. was not yet public.
Warren’s plan, which she has suggested in published reports will be presented as legislation, would be paid for by imposing a 2% fee on fortunes over $ 50 million, a wealth tax designed to target the 0.1 % of the richest households in the country. Warren predicts the tax would bring in $ 2.75 trillion over 10 years, enough to pay for a universal child care plan, free tuition at public colleges and universities, and student debt cancellation for about 42 million Americans – with income remaining.
Critics say high earners would find ways around such penalties. But if supporters of free student and college debt relief fail to meet their income targets, they might just increase the deficit – as President Donald Trump and Republicans in Congress have done by spending more. $ 1 trillion in tax cuts without paying them.
(This story originally appeared on June 25, 2019)