RUSH: Now let’s move on to Fauxcahontas. The contest is on, the Democrat presidential nomination sweepstakes, and they’re trying to out-liberal each other, and Fauxcahontas is not faring well in any of the polls. Crazy Bernie is lapping the field. Crazy Bernie, in New Hampshire’s latest poll, is at 30% voter preference. Joe Biden is next at 15%, and then what’s-his-face, 18%… Then Buttigieg is in at 15%, third place, and then the rest of them are in single digits.
Fauxcahontas is at 7 or 5%. So she — and I’ve been waiting for this. You know, how long have we been talking here about the fact that it’s just a matter of time before the Democrats propose forgiving student loans as a way of solidifying the Millennial vote? How many Millennials are out there, do you think, college grads that are buried in student loan debt that would just love it if some government official, some president came along and just waved off the debt?
Well, that’s what Fauxcahontas proposes, and here’s how.
She “proposes to pay off Americans’ student loans in a tiered fashion: Up to $50,000 in bailouts for those earning up to $100,000 a year, gradually phased out to $0.00 for those earning $250,000 a year or more. That would eliminate all student debt for about 75% of borrowers and provide some reduction for all but 5% of borrowers. … [She] also proposes to make college free for all students, not only eliminating tuition costs but also radically expanding federal higher-education spending to cover books, student housing and living expenses, and child care — a parallel welfare state for undergraduates.”
So far here’s where we are. She wants to pay off American student loans, give them forgiveness for every family up to $250,000. If you earn $250,000 or more, you’re out of luck. And then she wants to make college from this day forward, or whenever this stupid thing’s enacted, free for everybody and the government is going to expand how much they will pay for books, housing, and living expenses and child care, of course, for all these kids that don’t get abortions.
So a parallel welfare state for undergraduates. So free if you have already gone and borrowed money for it and free if you haven’t. Her plan would wipe away — let me put it another way — her plan would wipe away up to $50,000 in student debt for borrowers with an annual household income of less than a hundred thousand dollars. That’s 42 million Americans right there.
Her plan would cover tuition at all two- and four-year public colleges and expand Pell grants for low income students by $100 billion and create a $50 billion fund for historically black colleges and universities. The rough cost of all of this is $1.25 trillion over 10 years. The debt forgiveness alone would involve a one-time cost of $640 billion. That’s how much has been loaned or how much lent and repayment plus interest is owed to the government, $640 billion, she just wants to wipe it out.
She unveiled this plan in a post on the website Medium. She plans to pay for this with her ultra-millionaire tax, a 2% annual tax on 75,000 families with a $50 million net worth or more. So a new tax on 75,000 families is going to pay for all of this, she says.
This is an example. A person with a household income of $130,000 would get $40,000 in cancellation of student debt. A person with a household income of $160,000 would get $30,000 in cancellation. But a lot of people have gone on social media to raise questions about this. And you know who they are?
They’re people who’ve already paid off their student loans, and what they want to know is, “Well, what about me? I followed the rules. I borrowed the money; I went to college; I graduated; I got a job; I paid back my loan. What are you gonna do for me? Do I get a refund?” People are asking if they’re going to get refunds on their student loans that they paid off.
Another comment: “This is seriously stupid. Everybody knows what they’re borrowing when they go through the process. I want no part of paying off everybody else’s student loans.” Well, that’s exactly what we’re all gonna be doing. It’s a gambit to get the Millennial vote or call it the student loan debt vote.
But here’s something that I think you need to look at. Is it fair — since this is a big word in Millennial worlds today — is it fair to use taxpayer money to pay off somebody else’s commitments they agreed to? Is it fair just because somebody has $50 million to soak a new tax on ’em to pay for somebody else’s commitment?
Are people who paid their student debts gonna be penalized for financial planning, or will they get reparations? Well, I mean, it’s a legitimate question. “Hey, I paid my student debt off. Now you’re giving it away for everybody else? What about me? Are you gonna give me my money back? Gonna give me a refund?”
But there’s one more thing here. Her 2% wealth tax, that sounds like nothing. But I want to give you an alternative way of looking at this, which you will not see anywhere in the Drive-By Media because they don’t get this. A 2% wealth tax, 2% is two cents. And I predict that that’s how Fauxcahontas is going to sell it. Two cents, 2%, two cents on every dollar? That’s nothing. That’s nothing to somebody that’s got $50 million.
Well, let’s look at it this way. Let’s say that you have $50 million, you have a net worth of $50 million. And not all of that is cash. That’s net worth, and it is the sum total of your assets. We’re not talking about people that have $50 million in cash here. This is a wealth tax that she’s proposing, not an income tax, not a capital gains tax. She is proposing a wealth tax.
Okay. So you have a portfolio, your net worth is $50 million and much of it’s invested. And let’s say that you average an annual return on that portfolio — let’s pick a number easy to work with. Let’s say you average 5% gain. You are going to get a 2% tax on that 5% gain. You know what that is? That’s 40%, gang! That’s a 40% tax, not a 2% tax!
You’ve got your net worth of $50 million. It’s not just sitting there. It grows. You’ve got it invested. The average investment, to pick any, is 5%. That’s how much the average portfolio will gain. She’s gonna have a 2% tax. Two percent is two cents, is the way she sells it. But you take 2%, you got your 50 as the floor, then your investment portfolio throws off a gain of 5%, you’ve got a 2% tax. Two percent of 5% is 40%.
The way this is gonna work out, people are gonna be paying 40% of whatever their portfolio gains, not 2% of the $50 million. Either way it’s a lot of money to pay for somebody else’s commitments that they made! It is pure socialism, taken from those who can because they have, ’cause they’ve gotta.