Sen. Elizabeth Warren, a socialist from Massachusetts, has also proposed a plan for free college tuition along with the forgiveness of many student loans. However, Warren’s plan has caps and limits on how much it would forgive.
Sen. Bernie Sanders, another socialist from Massachusetts and northern neighbor of Vermont, also has a plan to introduce legislation that calls for free tuition and forgiveness of student loan debt. Sanders’ plan goes beyond that of Warren, in that he wants not only free tuition at all public junior colleges, colleges and universities, but he also wants free college fees and the forgiveness of ALL outstanding student loan debt.
It is currently estimated that current student loan debt is about $1.6 trillion. It’s easy to say POOF and the debts are forgiven, but finding a way to repay the institutions who loaned the money is still necessary. You can’t just tell them to wipe those loans off your books and absorb the financial loss. It’s not that easy nor is it legal.
I heard one national newscast say that Sanders proposes to pay off the outstanding $1.6 trillion of student loans by placing a tax on Wall Street, which he claims would generate enough to pay off the loans in 10 years.
Oh yeah, Wall Street has tons of money and can easily afford to pay the additional taxes, right?
Who makes up Wall Street?
The companies that employ millions of Americans. Those companies are not going to just roll over and pay the additional taxes out of their profits or their savings. Oh no. They will pass that tax down the line by cutting the workforce and/or cutting hours and benefits of workers. Additionally, they will pass that tax on by raising prices on their products and services, thus driving inflation higher and higher. Gee, isn’t that what socialists did in Venezuela? And look at their situation now!
Socialist Democrats like Sanders and Warren keep talking about making corporations and the wealthy pay their share and the need to drastically raise their taxes.
THINK ABOUT IT!!!!
When Trump LOWERED corporate taxes, many jobs were created and tens of thousands of workers saw raises. Corporations (which involves Wall Street) paid less federal tax per unit, so they hired more people, increases hours and benefits and in the long run, still paid as much if not more in taxes because of the increased business. Unemployment for black and Hispanic Americans is at an all time low. The unemployment rate for female workers is also at the lowest it has been in many years. The overall unemployment rate is lower than it has been in years and it’s largely due to the Trump tax cuts.
It only makes sense that if the taxes are drastically increased, the exact opposite is true. Many companies and corporations will cut jobs, reduce hours and benefits, leaving many Americans out of work and underpaid.
This alone will result in another economic recession, probably worse than the one we just recovered from.
Don’t forget that Sanders, Warren and others also want free healthcare for all. That is estimated to come with a $30 trillion price tag over 10 years, or $3 trillion a year. Add that to their student loan forgiveness and free college, which is NOT part of that $1.6 trillion figure mentioned above and you end up with complete economic collapse of the United States.