Image via ‘PT Money’ at ptmoney.com
Republicans and Democrats are actively trying to court “millennials” to vote for them. Of course the Republicans are at a big disadvantage in this fight because they are stigmatized by the fact that many feel the GOP is nothing but a party of old rich white guys.
It does not help when you see editorials like this one (Another day older and deeper in debt) from the ultra-conservative editors at Fosters Daily Democrat. They are trying to push millennials into voting against Senator Shaheen because she wants to help reduce their student loan debt, and they say that could raise taxes on, “your parents”. Say what?
“Democrats such as U.S. Sen. Jeanne Shaheen would like to offer you lower interest rates, at the expense of raising taxes on, perhaps, your parents.”
This is complete garbage. Senator Shaheen is pushing for a bill authored by Senator Elizabeth Warren, which would allow students to refinance their student loans from interest rates of 6-8% to less than 1%.
Fosters does get a few things right:
- The average college graduate in New Hampshire leaves school with $33,000 in student loan debt.
- The federal government is making money off of your student loans.
These are absolute true, and I think it is appalling. The federal government made upwards of $66 billion dollars in profit off of student loans between 2007 and 2012. Senator Elizabeth Warren essentially said that if banks can borrow from the government at .75% then our students should be given the same deal as the big banks.
So what would happen to the federal budget if they cut out the $66 billion dollars in profits from student loans? Fosters wants you to believe that this will result in a tax increase on your parents. This is completely untrue. None of these changes would increase taxes on the middle class families of New Hampshire.
The tax increase that Senator Warren suggested has been dubbed “the Buffet rule” after billionaire Warren Buffet. The tax increase would only effect the ultra-wealthy 1% of America. Warren Buffet has said in many different ways that it is absolutely wrong that he pays a lower effective tax rate than his own secretary. He suggested that the ultra-wealthy 1% could, and should, be paying a higher tax rate.
I agree with Fosters that the national debt is a problem. We must find a way to reduce our national debt that helps to build a stronger economy and a better community. The editors at Fosters and I disagree on the ways we need to address this problem. They want to follow the GOP rhetoric that we must reduce the size of government and force draconian cuts to all federal programs (except for anything surrounding the DOD). I disagree with this. If you look back at history, it was government investment through work programs (building roads and bridges), increasing the minimum wage, a strong manufacturing base and strong unions that pulled us out of the Great Depression. At the same time we created “Social Security” to help our seniors retire with dignity.
Next we need to raise our gross domestic product. We need to increase manufacturing here at home and start reducing our debt by changing our trade deficit to a trade surplus. The more we make right here at home, the more people have jobs. The more jobs we have, the more money is spent in our local communities. It starts by looking for the “made in the USA” label!
Next to reduce government spending and reduce our national debt, we must start by increasing the minimum wage. Too many Americans are working one, two or even three jobs and can barely afford to pay their rent and feed their children. By increasing the minimum wage, to a real living wage, full time workers would be making enough to take care of their family without any assistance from the government.
Of course there are other solutions that none of the “Tea Party” conservatives want to talk about. One is placing a .5% tax on Wall Street. The tax would take a fraction of a penny on every transaction. This “Robin Hood Tax” would generate upwards of $350 billion dollars a year. $350 billion would cover the loss in revenue from the student loan interest, restore some of the cuts made to social programs, and still have plenty more to begin to repay our national debt. This would also have the added benefit of slowing down Wall Street and encouraging corporations to invest more of their profits in workers and the longevity of their company, not inflating their stock prices.
Ultimately it is about ensuring that corporations and the millionaires and billionaires are paying their fair share in taxes.
One last thing, Fosters tossed in this line about Social Security which is another attempt to scare millennials into believing that Social Security will be extinct by the time they reach retirement.
“According to Pew Research, 90 percent believe Social Security benefits will be reduced (39%) by the time you become eligible or won’t exist at all (51%).” (Emphasis added)
This statement is nothing more than proof that the majority of Americans do not understand what is really happening to Social Security. These numbers are the results of a poll where people believe that Social Security will completely fall apart.
As the AFL-CIO laid it out, “Social Security is not going broke. It will always be able to collect payroll tax revenue to fund benefits. According to the Trustees, Social Security can pay 100% of promised benefits until 2033. Without any changes at all, Social Security can pay three-fourths of promised benefits indefinitely after that.”
The Social Security Trust Fund collects money from payroll taxes. By increasing the minimum wage, it would automatically increase the revenues collected through the payroll tax therefor strengthening Social Security, and adding to its fully funded longevity.
Many elected leaders like Sen. Elizabeth Warren and Sen. Bernie Sanders think that minor adjustment to the Payroll Tax would strengthen Social Security and would allow for higher benefits for retirees. They just want to remove the Social Security cap forcing the ultra-wealthy to pay into Social Security Trust Fund like all the rest of us. Problem completely solved!