Sen. Warren: Hey, let’s help students refinance their loans by raising taxes on the wealthy!

posted at 6:41 pm on May 7, 2014 by Erika Johnsen

The Democrats’ push to hike the national minimum wage is merely the crown jewel in the so-called “fair shot” agenda that they hope will erase ObamaCare from voters’ minds by the time they hit the ballot box this November; the next action item on their intellectually (not to mention fiscally) bankrupt list is a similarly redistributive and equally lame pander to the young people who have lately been electorally shuffling away from them. Sen. Elizabeth Warren, it’s your cue:

Warren, a Massachusetts Democrat, is poised to introduce a bill which, in part, would allow people holding student loans financed at rates higher than today’s interest rate to refinance those loans, similar to the way one refinances a home mortgage or car loan.

“When interest rates drop, people can refinance their home, they can refinance their business debt. It’s regarded as a smart move for any consumer or business. But student borrowers are prohibited from doing that under most programs,” Warren told MassLive.com. “This bill says we’re going to change that and let them refinance that down to current low rates.” …

“This is $66 billion on just the loans issued during that period. That is insane,” Warren said. “This (bill) brings that down. Instead of taxing students who can’t afford to pay for college up front, it says we are investing in those students.”

It’s funny she would refer to the $66 billion in interest that the federal government, i.e. taxpayers stand to earn on the money they lent to students between 2007 and 2012 as a “tax,” because that brings us to how Warren proposes to pay for this generous “refinancing” opportunity. Surprise, surprise:

But since cutting something that has generated such a huge profit over just five years will place a hole in the already-stretched federal budget, Warren is proposing a solution, albeit one that is bound to be viewed as being as political as it is practical. …

Enacting the Buffett Rule, which Republicans in the Senate voted to kill in 2012 calling it a “political stunt,” would increase the income tax rate of Americans earning more than $1 million annually. The money generated through that move, according to Warren, would make the difference and send a message about the nation’s “values.”

“The act covers the full budgetary cost of refinancing by implementing the Buffett Rule. Basically, the way I see it, there are billions of dollars here that flow out of the U.S. Treasury to a tax loophole, that are available to millionaires and billionaires. This bill says to use that money to reduce the interest rate on student loans,” Warren said. “So it’s a pretty direct choice – should America be investing billions of dollars in tax loopholes for billionaires or investing that money to help young people who are trying to get an education? I think spending should be consistent with our values.”

Well. That certainly would send a message about the nation’s “values,” but you know what could really help young people out with “money they can use to build an economic future and to strengthen the economy”? How about,  robust economy in which they can get good, well-paying, career-advancing jobs — which is not accomplished by enacting stupid show taxes on the wealthy, further convoluting our tax code, and placing more burdens on investors and job creators.

The real point of this exercise, of course, is to point out yet another way in which Republicans are ostensibly protecting their rich robber-baron buddies at the expense of our country’s poor, struggling future leaders, but the reality is that the federal government created this indeed tremendously problematic $1 trillion+ student loan bubble in the first place by offering indiscriminately available and inexpensive loans to anyone and everyone who might want them.


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Class warfare from a no-class Senator.

Sven on May 7, 2014 at 6:45 PM

OT: Has the Lois Lerner vote occurred yet..?

d1carter on May 7, 2014 at 6:46 PM

investing that money to help young people who are trying to get an education?

You invest your own money! Stop stealing mine!

OldEnglish on May 7, 2014 at 6:46 PM

Sen. Warren: Hey, let’s help students refinance their loans by raising taxes on the wealthy!

…if JugEars had a sister…she would look like…….

KOOLAID2 on May 7, 2014 at 6:47 PM

This is the kind of ideological totalitarian that checks a box on a clipboard and sends you to the mine to have a Nagant pressed against your skull.

Murphy9 on May 7, 2014 at 6:48 PM

Hey, maybe they could all just claim minority status as she did, and snag some of those sweet minority only scholarships and take advantage of affirmative action like Fauxcohontas did.

When Liawatha checks the box that has her volunteer to pay taxes at a higher rate, then she can come to hit on the rest of us.

I wish someone would just tell her that a distant, very white relative being spat upon by Cherokees during the Trail of Tears is insufficient as a mode of DNA transfer that would allow her to claim “native American” status.

DimsdalePiranha on May 7, 2014 at 6:50 PM

Cheif Running Deficit want heap big taxes for papoose brain-washing.

Rusty Nail on May 7, 2014 at 6:51 PM

I’m so hoping that Hillary gets cold feet and the Dumbocrats run Injun Liz in her place.

Now that would be fun.

novaculus on May 7, 2014 at 6:51 PM

The Indian cigar holder strikes again!

b1jetmech on May 7, 2014 at 6:52 PM

Or, instead of raising taxes they could just market the fact that students can take advantage of the income based repayment programs that also include loan forgiveness if its not paid off by a certain time… This was signed into law in 2007, no need to keep making stupid laws Sen Warren…

SoCalInfidel on May 7, 2014 at 6:53 PM

SoCalInfidel on May 7, 2014 at 6:53 PM

That’s a grand idea Lizzie. The public would enthusiastically support a 50% surtax on the rich if you specifically limit it to those making between $174,000 and $193,400.

You know, the salary range for members of the US Congress.

BacaDog on May 7, 2014 at 6:54 PM

How, Senator Warren!

Nomennovum on May 7, 2014 at 6:55 PM

If she is serious about helping anyone she should scalp herself first.

NotCoach on May 7, 2014 at 6:55 PM

Why should the rich pay for some stupid ethnic-oriented, gender centric, blah studies program that prepares the student for nothing other than being a drain on society?

katiejane on May 7, 2014 at 6:56 PM

raising taxes on the wealthy is literally the left’s solution for everything. it’s so annoying!!

Sachiko on May 7, 2014 at 6:56 PM

novaculus on May 7, 2014 at 6:51 PM

Do you remember a caption the photo they had here during the Fauxcahontas debacle that featured Elizabeth Warren sitting on a Harley Davidson?

One of the commenters came up with the best line ever. I still laugh and think of it every time I see her.

“Looks like a Harley but feels like an Indian.”

lol!

thatsafactjack on May 7, 2014 at 6:56 PM

Part of the problem is that students takes these loans for expenses other than only tuition and books, i.e. LIVING EXPENSES, rather than getting a job, or JOBS, as in plural.

I worked my way through college with one student loan, for tuition and books for only one semester, campus work study, and 4 years working fast food. Yes it was difficult, but it helped build character and I didn’t grow up to think the world owed me a damn thing.

No one is forcing these students to take on this debt. They do it willingly and know the terms when they sign the contract (no re-financing).

ladyingray on May 7, 2014 at 6:58 PM

Enacting the Buffett Rule, which Republicans in the Senate voted to kill in 2012 calling it a “political stunt,” would increase the income tax rate of Americans earning more than $1 million annually. The money generated through that move, according to Warren, would make the difference and send a message about the nation’s “values.”

“The act covers the full budgetary cost of refinancing by implementing the Buffett Rule. Basically, the way I see it, there are billions of dollars here that flow out of the U.S. Treasury to a tax loophole, that are available to millionaires and billionaires. This bill says to use that money to reduce the interest rate on student loans,” Warren said. “So it’s a pretty direct choice – should America be investing billions of dollars in tax loopholes for billionaires or investing that money to help young people who are trying to get an education? I think spending should be consistent with our values.”

You and I don’t have common values. Said millions of people.

Axe on May 7, 2014 at 6:58 PM

thatsafactjack on May 7, 2014 at 6:56 PM

An Injun Liz candidacy would provide endless fodder for mockery. We can always hope. And if the Benghazi scandal finally breaks wide open, it may yet happen.

novaculus on May 7, 2014 at 6:59 PM

Who actually earns a paycheck of over a million dollars a year?

Not Warren Buffet. Not Mitt Romney. Not Bill Gates. They aren’t employees, they don’t make their money with a salary.

Who makes a million dollar salary? Sports figures, for one. Hollywood glitterati, for another. TV Land talking heads. Entertainers.

CEOs and so forth do as well, but their compensation can surely be tweaked to reflect less in salary and more in deferred stock options or something.

I think Lying Sack-a-Jawea is the perfect person to implement a special tax on the entertainment sector of our economy. Really, I do- its only fair (its for the *now adult* children).

Dolce Far Niente on May 7, 2014 at 7:00 PM

The FAKE American Indian seems to have a fascination with OTHER PEOPLE’S MONEY.

But then, rich Democrats don’t pay taxes.

GarandFan on May 7, 2014 at 7:01 PM

OT: Has the Lois Lerner vote occurred yet..?

d1carter on May 7, 2014 at 6:46 PM

Just ended. Lois is held in contempt of the House. Even 6 Dems joined in.

rbj on May 7, 2014 at 7:04 PM

Sen. Warren: Hey, let’s help students refinance their loans by raising taxes on the wealthy!

The ad writes itself. Warren navigating the Charles River in a canoe. Warren coming ashore at Harvard and going into a Starbucks where students just got their monthly statements. Final scene a close up of Warren with a tear streaming down those high cheekbones.

And for you stupid Millenials who have no sense of past cultural trends. This is for you.

https://www.youtube.com/watch?v=j7OHG7tHrNM

* A co-worker sent out an e-mail that talked about a quid-pro-quo proposition by joking that “I’ll gladly pay you Tuesday for a hamburger today”. The twenty-thirty something who was the recipient thought he was insane.

Happy Nomad on May 7, 2014 at 7:04 PM

OT:

Greta reporting the House has just held Lerner in contempt.

novaculus on May 7, 2014 at 7:04 PM

Elizabeth Pocahontas Warren’s smoking too much peyote!

racquetballer on May 7, 2014 at 7:06 PM

Just have them pay back their debt in wampum.

TinFin on May 7, 2014 at 7:06 PM

You guys bash Lieawatha Warren all you want, but this is terrific politics for her.

She’s positioning herself to be the Left’s alternative to the “moderate” Hillary Clinton.

Run, Lizzie, run! If you win, stick it to those rich bastards who’ve sold us out on our borders. Stick it to them good and hard.

fadetogray on May 7, 2014 at 7:06 PM

All the left can do is look for more $$ to spend on sumpin’, and it’s always OURS !!
Well, Tootsawatha, even taxing the rich 100% couldn’t fund any of your sweet plans, let alone the monstrosity that you’ve already created .. not even for a day or two.
Stuff a sock in it, ‘girlfriend’ !!!

Idjits, all.

pambi on May 7, 2014 at 7:06 PM

good idea senator warren. you are rich so let’s start with a 100% wealth tax on you. then extend it to everyone who votes for your bill and the president if he signs it.

jlw on May 7, 2014 at 7:09 PM

OT:

Greta reporting the House has just held Lerner in contempt.

novaculus on May 7, 2014 at 7:04 PM

YAY !!

pambi on May 7, 2014 at 7:09 PM

If they raised taxes on people making more than $10 million, then fine.

But what does that matter? Most of those people have parked their money off shore…

Washington Fancy on May 7, 2014 at 7:11 PM

It’s GOOD NEWS that 6 Dems joined the vote. Very good.

John the Libertarian on May 7, 2014 at 7:12 PM

If they raised taxes on people making more than $10 million, then fine.

But what does that matter? Most of those people have parked their money off shore…

Washington Fancy on May 7, 2014 at 7:11 PM

Including most in the senate !
Yay, that’ll go over really well.

pambi on May 7, 2014 at 7:12 PM

Run, Liawatha, run!

petefrt on May 7, 2014 at 7:14 PM

Okay, Warren. You pay your taxes first.

DevilishSoda on May 7, 2014 at 7:14 PM

Put price controls on colleges to force them to stop gouging. The pricing anarchy is in need of some common sense regulation. Eggheads advocate for ideas like this, so I’m sure they won’t object.

Also add a Cadillac tax on every employee that earns more than $100k. Again, academics love this kind of thing, so it should be no problem.

My favorite though would be to appropriate any endowment surplus over $1M and use it for studen debt relief and scholarships. The schools don’t need that money – it’s just sitting there. Put it to work for the students!

forest on May 7, 2014 at 7:15 PM

How MA could possibly pick this deranged, infantile megalomaniac over adult Scott Brown?! If there were aliens and they saw such a selection they’d have to conclude conclusively there’s no intelligent life here.

russedav on May 7, 2014 at 7:16 PM

She’s positioning herself to be the Left’s alternative to the “moderate” Hillary Clinton.

Run, Lizzie, run! If you win, stick it to those rich bastards who’ve sold us out on our borders. Stick it to them good and hard.

fadetogray on May 7, 2014 at 7:06 PM

Yeah, if the Dems are intent on running a birth canal in 2016, Warren is the plan B.

Happy Nomad on May 7, 2014 at 7:18 PM

So this is what the Democrats call Presidential material?

sandee on May 7, 2014 at 7:19 PM

If Ms. Warren asked my advice, I would tell her not to advocate this plan. we all know what will happen, they will run out of money and people who do not intend to pay back their loans will still not pay back their loans. then she will have to go back to the intended audience and explain why they are still in debt and that her plan failed. After all she wouldn’t want to be known as an “indian giver”.

warmairfan on May 7, 2014 at 7:20 PM

Here’s an absurd idea. I know that you’ll think that I’ve been listening to far too many of Obama’s speeches. Nevertheless, here it is: work. Oh, I’ll probably get banned for using a four-letter word. I’ll risk it and say again “work”! Let them do what so many have done before them.

Take a reduced course load, a year longer for the degree, and work part-time. Or, work for a few years, save some money, and in the meantime explore how they can get the best bang for their buck. High-priced educational institutions are not always the best choice. Ask their parents if they’re able and willing to do a matching funds deal. However it’s managed it has many pluses. The employers I’ve known like the applicants with job experience and education.

VALman on May 7, 2014 at 7:20 PM

forest on May 7, 2014 at 7:15 PM

Yes, or maybe just roll back fed funding. Makes no sense to continue funding the Dem infrastructure.

petefrt on May 7, 2014 at 7:22 PM

VALman on May 7, 2014 at 7:20 PM

They’re going to name a camp after you!

OldEnglish on May 7, 2014 at 7:25 PM

I don’t see what good refinancing is going to do given the current bubble. A few percentage points on interest if someone is $70,000 in debt for a useless degree and doesn’t have a job is meaningless.

The government should have never been in the loan business in the first place.

Also, regardless of who was issuing the loans, they should be dischargeable through bankruptcy. Then the borrower takes a hit and the lender takes a hit, and hopefully learns not to issue bad loans in the future.

Bankruptcy is a natural part of a free market.

The student loan situation is as doomed as Social Security.

WhatSlushfund on May 7, 2014 at 7:26 PM

This government deals with the public in bad faith. They encourage, in fact insist, that institutions make loans, and then the government changes the rules after the fact. The government never gets blamed for the mistakes it makes, but the institutions get blamed for being forced to go along with the government.

oldennis on May 7, 2014 at 7:34 PM

Why not seize the endowments at the wealthy universities to pay the loans off? Thats where the cash from the loans gets stashed.

BobMbx on May 7, 2014 at 7:35 PM

forest on May 7, 2014 at 7:15 PM

Yes, or maybe just roll back fed funding. Makes no sense to continue funding the Dem infrastructure.

petefrt on May 7, 2014 at 7:22 PM

That too. No government slush funds for rapacious greedheads who raise prices 8% each year on exploited 18 year olds at 4 year socialist camps.

forest on May 7, 2014 at 7:35 PM

Degeneate Liberals. Lies & taxes is all they’re good for. Help the bad decision makers with other people’s money.

RdLake on May 7, 2014 at 7:36 PM

Why would anyone take Buffet for real when he , himself, owes bunch of back taxes….

watertown on May 7, 2014 at 7:41 PM

Take a reduced course load, a year longer for the degree, and work part-time. Or, work for a few years, save some money, and in the meantime explore how they can get the best bang for their buck. High-priced educational institutions are not always the best choice. Ask their parents if they’re able and willing to do a matching funds deal. However it’s managed it has many pluses. The employers I’ve known like the applicants with job experience and education.

VALman on May 7, 2014 at 7:20 PM

Or they could go the full Wendy Davis and marry a rich man, abandon their family, and go to college debt free. But don’t forget to craft a fictional biography if you do that.

Happy Nomad on May 7, 2014 at 7:44 PM

No government slush funds for rapacious greedheads who raise prices 8% each year on exploited 18 year olds at 4 year socialist camps.

forest on May 7, 2014 at 7:35 PM

Fed funds, your tax dollars and mine, have created the best funded, most lucrative youth indoctrination machine in world history.

petefrt on May 7, 2014 at 7:52 PM

The cheating looter marxis scumhag can go directly to Hades.

Schadenfreude on May 7, 2014 at 7:52 PM

inexpensive loans

I see you have never been to college.

antisense on May 7, 2014 at 8:26 PM

novaculus on May 7, 2014 at 6:59 PM

Don’t tease me, Nova. :) I’d love to see Warren run, too.

I’m already buckled up and gritting my teeth ahead of the ‘You’re all sexists!’ hysteria coming our way in the ’16 campaign and hearing the LEFT chant ‘war on women’ endlessly. Any chance of levity is looking pretty slim right now.

thatsafactjack on May 7, 2014 at 8:29 PM

If Warren squares off against Clinton in the Dem primary, I may change my registration to Dem to vote in their primary. Then, I vote for in my polling place…wearing an Indian headdress.

BuckeyeSam on May 7, 2014 at 8:59 PM

Better solution: REDUCE THE COST OF COLLEGE by

- Reduce inflated salaries of Professors

- End Tenure for Professors

- Have full-time Professors teach at least 4 classes each term

- Use part-time professors to fill in as needed

- End grievance classes like gender and ethnic studies

- Use technology to offer classes online

- Reduce text book costs by using e-books

- Stop building unnecessary buildings on campuses

- Maximize use of campuses by offering year-round classes

- Have colleges/universities focus on their strengths rather than trying to be all things to all students

- End remedial classes by not admitting students who are not prepared for college level work

College tuition costs sky-rocketed when the federal government began guaranteeing student loans. This gave colleges the luxury of not having to reduce their cost structures since students could just add the rapidly increasing tuition payments to their loans.

Rather than reducing the cost of student loans, colleges need to reduce the cost of tuition.

Senator Warren should be well aware of where expenses could easily be cut on college campuses based on her many years as an affirmative action Professor at Harvard University.

wren on May 7, 2014 at 9:00 PM

Yeah, if the Dems are intent on running a birth canal in 2016, Warren is the plan B.

Happy Nomad on May 7, 2014 at 7:18 PM

I see what you did there.

Warren is the morning-after pill, in other words.

Dolce Far Niente on May 7, 2014 at 9:10 PM

She’s just squawling.

unclesmrgol on May 7, 2014 at 9:29 PM

I’d prefer we had asset forfeiture by all faux Native Americans.

EdmundBurke247 on May 7, 2014 at 9:32 PM

Mister Elizabeth Warren, spend your money to help your lib friends get an education in basket weaving, sex life of prehistoric birds or some other useless degree sand leave us citizens alone.

Wade on May 7, 2014 at 9:51 PM

Mister Elizabeth Warren, spend your money to help your lib friends get an education in basket weaving, sex life of prehistoric birds or some other useless degree sand leave us citizens alone.

Wade on May 7, 2014 at 9:51 PM

She should be good at making those colorful beaded vests.

slickwillie2001 on May 7, 2014 at 10:42 PM

Say, isn’t that Lieawatha’s ONLY solution to ANY problem? You know, raising taxes on the wealthy?

Asok Asus on May 7, 2014 at 11:20 PM

http://elizabethwarrenwiki.org/income-and-net-worth/

Great idea, Liz. I don’t think they accept wampum though.

NoPain on May 7, 2014 at 11:27 PM

the way I see it, there are billions of dollars here that flow out of the U.S. Treasury to a tax loophole,

This is key to her thinking: it’s the GOVERNMENT’S money that the rich are claiming as their own. Tax money doesn’t “flow out of the treasury” in tax loopholes. Loopholes, exemptions, overpayment, call it what you will, but the money was earned by citizens or corporations as recompense for production, or as interest on money invested in production.
Investment. There’s a word Obama and the rest like to throw around, but what they really mean by “investment” is “redistribution”.

tpitman on May 8, 2014 at 6:03 AM

I’d like to see a Senate-only tax. Then Warren could pay out of her own pocket instead of ours.

zoyclem on May 8, 2014 at 7:48 AM

One has to admire the Democrat party for their skill at playing retail politics. While the ideologically pure (on web sites such as this) expect to win elections with “issues” and grand themes, the Democrats understand that the majority of the voters are for sale to the highest bidder. Low information voters respond to pocket book issues. A vague promise to save overleveraged under educated students money on their loan obligations is enough to drive up the vote of the recent grads. a key Democrat voting bloc.

If Republicans want to win they are going to have to choose one or two Democrat interest groups and start upping their bid at least rhetorically. Hopefully the ideologically pure will catch on and shut up long enough to win some elections.

oznerola on May 8, 2014 at 8:41 AM

Wanting someone else to pay for other people’s _____________(fill in your preferred pet debt here) things is so not new for a dem. We already pay for their cell phones, food, tax deductions, housing, and health insurance why not pay off their loans.

Kissmygrits on May 8, 2014 at 9:25 AM

How about a severe PAY CUT to all the Liberal schmuck professors.

geminicontender on May 8, 2014 at 10:29 AM

Big squaw in Washington spell heap big trouble!

MaiDee on May 8, 2014 at 11:03 AM

Mrs. Warren is quite wealthy, and in Massachusetts, she can Check a Box and pay a higher tax rate, voluntarily. But she does not do it. It isn’t any fun unless she makes other people suffer too.

Fleuries on May 8, 2014 at 11:41 AM