Sanders, liberals, out with bill to cancel student debt




 

WASHINGTON (AP) - Days before the first Democratic presidential debates, Sen. Bernie Sanders and House progressives rolled out legislation to cancel all student debt, going farther than a signature proposal by Sen. Elizabeth Warren as the two jockey for support from the party's liberal base .

By canceling all student loans, Sanders says the proposal would address an economic burden for 45 million Americans. The key difference is that Warren's plan considers the income of the borrowers, canceling $50,000 in debt for those earning less than $100,000 per year and affecting an estimated 42 million people in the U.S.

Questions face both candidates about how to pay for all of that plus their proposals for free tuition at public colleges and universities. But the battling ideas highlight the rivalry between senators who have made fighting economic inequality the cornerstones of their 2020 presidential campaigns.

Sanders vowed at a Monday news conference that his plan "completely eliminates student debt in this country and the absurdity of sentencing an entire generation, the millennial generation, to a lifetime of debt for the crime of doing the right thing. And that is going out and getting a higher education." He appeared alongside the proposal's House sponsors, Reps. Ilhan Omar, D-Minn., Pramila Jayapal, D-Wash., and Rep. Alexandria Ocasio-Cortez, D-N.Y., with American Federation of Teachers President Randi Weingarten also in attendance.

His bill and Warren's plan are part of their broader appeal to liberal voters on issues such as health care, technology and education.

That appeal is likely to be fleshed out this week during the first Democratic debates . Twenty candidates are set for the showdown, with Warren part of the lineup on Wednesday and Sanders appearing a day later. The events come as Warren appears to be cutting into Sanders' support from the left.

Sanders' effort at one-upmanship on student loans, named the College For All Act, would cancel $1.6 trillion of debt and save the average borrower about $3,000 a year, according to materials obtained by The Associated Press. The result would be a stimulus that allows millennials in particular to invest in homes and cars that they wouldn't otherwise be able to afford. It would cost $2.2 billion and be paid for - and then some - by a series of taxes on such things as stock trades, bonds and derivatives, according to the proposal.

The universal debt relief is designed partly around the idea that it would mostly benefit Americans who can't afford college tuition without loans, according to a senior Democratic aide who spoke on condition of anonymity because the legislation wasn't yet public.

Warren's plan, which she plans to introduce as legislation alongside Rep. Jim Clyburn, D-S.C., would be paid for by imposing a 2% fee on fortunes greater than $50 million. Warren projects the levy would raise $2.75 trillion over 10 years, enough to pay for a universal child-care plan, free tuition at public colleges and universities, and student loan debt forgiveness for an estimated 42 million Americans - with revenue left over. Critics say top earners would find ways around such penalties.

One key difference between Sanders' and Warren's plans is their differing treatment of high earners: Warren wrote that her plan would offer "no debt cancellation to people with household income above $250,000," or the top 5%. Sanders would extend the benefit even to wealthy borrowers.

Asked on Monday about that decision, Sanders told reporters that he believes in "universality" and added: "In other areas we are going to demand that the wealthy and large corporations start paying their fair share in taxes."

___

Follow Kellman and Schor on Twitter at http://www.twitter.com/APLaurieKellman and http://www.twitter.com/ESchor .

___

This story has been corrected to show Warren will appear Wednesday, not Tuesday.

COMMENTS

More Related News

Six things to watch at the Democratic debate in Ohio
Six things to watch at the Democratic debate in Ohio

Twelve Democratic presidential candidates will take the stage in Westerville, Ohio, on Tuesday in the party's fourth debate of the nominating contest for the November 2020 U.S. election. It will be the largest scrum on a debate stage yet for the Democrats, as they try to find a nominee to take on President

Fictitious Video of President Shooting Critics and Media Shown at His Resort
Fictitious Video of President Shooting Critics and Media Shown at His Resort

WASHINGTON -- A video depicting a macabre scene of a fake President Donald Trump shooting, stabbing and brutally assaulting members of the news media and his political opponents was shown at a conference for his supporters at his Miami resort last week, according to footage obtained by The New York Times.Several

Billionaires Could Face Tax Rates Up to 97.5% Under Sanders
Billionaires Could Face Tax Rates Up to 97.5% Under Sanders

(Bloomberg) -- Billionaires may have much more to fear from a Bernie Sanders presidency than they do from an Elizabeth Warren administration, according to two economists advising both candidates.That's one of the conclusions of a new interactive website developed by University of California, Berkeley professors Emmanuel Saez and Gabriel Zucman.If Sanders had his way, they calculate that the 400 richest Americans, on average, would have an effective tax rate of 97.5%. That includes not only their income, but also a wealth tax that whittles away at the family fortune.The 97.5% average effective tax rate under his plans compares with 23% now and 62% under Warren's proposals, according to the...

Elizabeth Warren Is Jussie Smollett
Elizabeth Warren Is Jussie Smollett

Elizabeth Warren has a moving story about being fired from a teaching job because she was pregnant, a story that perfectly complements her political narrative that she is the tribune and champion of those who have been treated unfairly by the powerful. Joe Biden has a moving - and horrifying - story about his wife and daughter being killed by a drunk driver, a story that similarly could not have been designed more perfectly to bolster his political image as a man who can be counted on to soldier on in the face of adversity.Of course, neither story is true.Are we still caring about that sort of thing?Elizabeth Warren has long pretended to be a person of color - a "woman of color," the...

Sanders says rival Warren is
Sanders says rival Warren is 'capitalist through her bones'

Sanders made the comment in an interview for ABC's "This Week," highlighting a difference with Warren, who has been rising steadily in the polls, and now shares the leading position with former Vice President Joe Biden. Sanders has been falling well behind both. "Elizabeth, I think

Leave a Comment

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

Cancel reply

Comments

Top News: Latin America

facebook
Hit "Like"
Don't miss any important news
Thanks, you don't need to show me this anymore.