Bernie Sanders wants Wall Street to pay for America's student loan debt




Independent Vermont Sen. Bernie Sanders, who is running for president in 2020, wants to tax Wall Street transactions as a means to provide student debt relief to millions of Americans.

The presidential hopeful announced the proposal on Capitol Hill on Monday, where he was joined by Democratic New York Rep. Alexandria Ocasio-Cortez.

The plan, which calls on the federal government to eliminate $1.6 trillion worth of U.S. student debt and eliminate tuition at public and community colleges, would rely on a tax on Wall Street to cover the costs.

"In 2008, we bailed out Wall Street. Now it's time to tax Wall Street's greed to help the American people," Sanders wrote on his Facebook page.

Sanders unveiled the tax proposal last month, dubbed the "Inclusive Prosperity Act." The bill calls for a tax of 0.5 percent for stock trades, 0.1 percent for bonds and 0.005 percent for derivatives. A $1,000 stock trade would be taxed $5, while a $1,000 trade in derivatives would be taxed $0.05.

Sanders has deemed it a "speculation tax" because it is designed to discourage speculation within the market, meaning it is not aimed at middle-class investors who tend to leave their money in the market to grow over longer periods of time. Instead, it aims to curb short-term activity among high-frequency traders, which can have destabilizing effects on the market. In May 2010, for example, a so-called "flash crash"- said to be partially caused by selling among high-frequency traders - wiped out billions of dollars from stocks before prices recovered not long after.

By some estimates, the tax would raise $600 billion over the course of a decade. Sanders estimated the measure could raise as much as $2.4 trillion.

Washington Rep. Pramila Jayapal and Minnesota Rep. Ilhan Omar are co-sponsors of the bill to eliminate student debt.

Massachusetts Sen. Elizabeth Warren, who is also running for the Democratic Party nomination in 2020, recently unveiled her own plan to cancel student debt. Her plan involves the cancellation of $50,000 in student debt for individuals with household incomes below $100,000 - or about 42 million people. American households with higher incomes, up to $250,000, would also see some of their debt written off as well. The $50,000 cancellation amount would phase out by $1 for every $3 in income above $100,000.

Warren estimates her plan would cost $640 billion, while a Universal Free College program she also proposed would bring the total cost up to $1.25 trillion over the course of a decade. She said her plan could be paid for through her "ultra-millionaire tax," or a tax equal to 2 percent for those with more than $50 million in assets, or 3 percent for those who have assets valued at more than $1 billion.

CLICK HERE TO GET THE FOX BUSINESS APP

Outstanding student loan debt has doubled over the past decade to more than $1.5 trillion in 2018 and is now second only to the amount of mortgage debt held by Americans. It has been named as a contributor to declining home ownership rates among young adults.

Ocasio-Cortez said it was easier for her to become the youngest woman ever to serve in Congress than to pay off her student loans.

COMMENTS

More Related News

Alexandria Ocasio-Cortez Needs to Learn Economics
Alexandria Ocasio-Cortez Needs to Learn Economics

She just doesn't get it

U.S. presidential hopeful Sanders surges in early primary states, national polls
U.S. presidential hopeful Sanders surges in early primary states, national polls
  • US
  • 2020-01-26 14:55:35Z

U.S. Senator Bernie Sanders pulled ahead in a New Hampshire poll released on Sunday, bolstering evidence that he is gaining momentum with only days left until voting begins in the Democratic presidential contest. Sanders led a poll of New Hampshire voters with 25% support. Most of the field of Democratic candidates vying to challenge Republican President Donald Trump in the November 2020 election have turned their attention to Iowa, which holds the first contest on Feb. 3.

LGBT Rights Group Demands Sanders Renounce Rogan Endorsement
LGBT Rights Group Demands Sanders Renounce Rogan Endorsement

(Bloomberg) -- The Human Rights Campaign is calling on Bernie Sanders to renounce an endorsement from radio host Joe Rogan, who has made derogatory comments about African Americans and LGBTQ people.Rogan, who hosts "The Joe Rogan Experience," one of the most downloaded podcasts, said he would "probably vote for Bernie," adding "I believe in him. I like him a lot."In response, HRC President Alphonso David said in a statement that while Sanders' campaign has been "unabashedly supportive of the rights of LGBTQ people," Rogan "has attacked transgender people, gay men, women, people of color and countless marginalized groups at every opportunity."The statement from the largest LBGTQ advocacy...

'I really hope she is the future': AOC's support of Sanders fuels 2024 speculation

Alexandria Ocasio-Cortez's aid of Bernie Sanders' campaign is raising talk of the possibility she might run for the White House herselfIt was billed as a rally for Bernie Sanders' presidential campaign. But the only aging white man on the platform was the film-maker Michael Moore, and attendee Brittany Springmeier wasn't there to see him.She was in Iowa City for real star of the show, Alexandria Ocasio-Cortez."She's speaking for us. She's speaking for the people. She has a passion for the millennials. She's speaking for everyone in America who doesn't have a voice," said Springmeier, a millennial herself who is unable to work because of a disability.With the Vermont senator trapped in...

Biden picks up another high profile endorsement in Iowa as voting nears
Biden picks up another high profile endorsement in Iowa as voting nears
  • US
  • 2020-01-25 13:15:59Z

Democratic presidential candidate Joe Biden picked up another high profile endorsement on Saturday in Iowa, where the party's nominating contest kicks off in nine days, after U.S. congresswoman Cindy Axne said she was backing the former vice president. Axne, a freshman U.S. lawmaker and moderate, is the latest in a slew of big-name endorsements for Biden in Iowa which could have an impact on undecided voters as caucus day nears on Feb. 3. Two former Iowa Democratic governors, Tom Vilsack and Chet Culver, have backed Biden, as has another U.S. House member, congresswoman Abby Finkenauer.

Leave a Comment

Your email address will not be published. Required fields are marked with *

Cancel reply

Comments

Top News: Economy