GOP To Block Bill That Would Help 40 Million People Because It Raises Taxes on Millionaires

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Senate Republicans are signaling that they are going to block Elizabeth Warren’s bill to help 40 million students refinance their loans, because it would raise taxes on millionaires.

Sen Warren’s bill would allow students to refinance their old debt at today’s lower interest rates. In many cases, Warren’s bill would allow those who are burdened by student loan debt to slice their interest rate from 6% or 7% to 3.86%. Her legislation would help 40 million borrowers, and would be paid for by phasing in a new tax on millionaires in 2015.

President Obama gave the bill his full support today.

The president said:

I’ve taken action on my own to offer millions of students the opportunity to cap their monthly student loan payments to 10% of their income. But Congress needs to do its part. The good news is that Senate Democrats are working on a bill that would help more young people save money. Just like you can refinance your mortgage at a lower interest rate, this bill would let you refinance your student loans. And we’d pay for it by closing loopholes that allow some millionaires to pay a lower tax rate than the middle class.

That’s the choice that your representatives in Congress will make in the coming weeks – protect young people from crushing debt, or protect tax breaks for millionaires. And while Congress decides what it’s going to do, I will keep doing whatever I can without Congress to help responsible young people pay off their loans – including new action I will take this week.

Although this bill has 35 Senate co-sponsors, Republican Minority Leader Mitch McConnell is signalling that he is going to block the legislation from passing. McConnell said, “This bill doesn’t make college more affordable, reduce the amount of money students will have to borrow, or do anything about the lack of jobs grads face in the Obama economy.”

The truth is that McConnell is going to obstruct a piece of legislation that would help 40 millions Americans save money and get out of debt, because he refuses raise taxes on a few thousand of the wealthiest Americans.

Forty million people are going to continue to be crushed by crippling student loan debt because Republicans refuse to raise taxes on millionaires. This is what Citizens United money is able to buy the conservative billionaires. Warren’s bill is a common sense proposal that would help tens of millions of people, but it will be obstructed because it would cost some millionaires their pocket change.

People are suffering because the wealthiest Americans are running the Republican Party. The likely fate of Warren’s bill is another example of why the nation must get the big donors out of our campaign finance system.

45 Replies to “GOP To Block Bill That Would Help 40 Million People Because It Raises Taxes on Millionaires”

  1. Our country is in debt because of the unrealistic trickle down tax rates.

    For the 205 years before the unrealistic Republican tax cuts of 1981 we had a total debt of $1 trillion.

    During those 205 years we paid for World Wars, the Korean War, having 500,000 troops in Vietnam, the space race, building the strongest military in the world, the New Deal, airports, bridges, and the interstate highway system.

    In the 32 years since unrealistic trickle down tax cuts we’ve added $16 trillion to the national debt

    Do you see the connection or do you believe in coincidences?

    It was no accident that the debt got as high as it is.

    It was all part of the thirty two year Republican strategy called “starve the beast,” by which Republicans have worked to reduce taxes and increase the national debt as large as possible – all to create the supposed “debt crisis” that we now face and to use that crisis to eliminate programs like Medicare, Medicaid, Social Security and a slew of …

  2. The GOP is still pouting that they didn’t get in on the deal to bring Sgt Bergdahl home…that no one asked THEIR opinion or advice.

    Typical of the GOP, they’ve fully twisted the bill because it doesn’t address issues that it isn’t designed to address.

    It’s time we started listing these ‘nay-sayers’ by name…have them stand up for the courage of their convictions. I wonder, if they had to stand and raise their hand, how many Senators running for office Senator McTurdle could muster to ‘the cause.’

  3. Anyone surprised by this, because the GOP simply serve their Fascist and greedy wealthy and big corporate masters, has REALLY not been paying attention. And, if you’re a member of the GOP and you’re NOT a rich, old white male Conservative, guess what? Those rich, old white male Cons, the power structure of the party, consider you a “Useful Idiot”. This means all GOP women, minorities, Veterans, Tea Partiers, Libertarians, Progressives and Moderates. This sad fact was confirmed by none other than Turdblossom (Karl Rove) himself on Fox “News” one night….

  4. Reaganomics, the gift that just keeps on giving. Let’s sweep these yokels out in 14′ and 16′.

  5. That’s why this upcoming election should be fought on a national front. There are no moderates republicans. Paint them all with the same teabagging, class warfare brush. This is the perfect storm right here. 40 million potential voters getting screwed by the few. Now if that lackey Steve Israel take his head out of his ass and fight for Democrats then we can retake the house with these groups that the republicans have spit on

    Afican Americans
    Hispanics
    Veterans
    Women
    LGBT
    Students
    Workers
    Check all of the above GOTV and we will win

  6. Ethically, Morally Wrong, Appalling, unconstitutional, and criminal and needs to Stop NOW.
    TAX THE RICH: There are 492 billionaires living in the US that don’t pay Federal Taxes while 16 million kids living in poverty and 50 million are paid so little they qualify for Federal Programs funded by 98% of us. The world spent $1735 Billion on war in 2012. It would take approximately $135 Billion to totally eradicate Poverty.
    CLOSE THE LOOPHOLES: 26 Major Corporations Paid No Corporate Income Tax For The Last Four Years, Despite Making Billions In Profits. Had these 30 companies paid the full 35 percent corporate tax rate over the 2008-11 period, they would have paid $78.3 billion more in federal income taxes.

  7. Actually we survived with exactly zero income tax until 1862. Amazingly enough that tax was only enacted to cover the cost of the Civil War. That tax rate was 3% for those earning under $10,000 and a little higher for those who earned above $10,000. That tax was then eliminated in 1872 as the war debt was paid off. The US government survived on taxes on tobacco, alcohol and import tariffs. It wasn’t until 1913 that income taxes started again.

    So no – we didn’t survive 205 years with a higher tax rate. But don’t let the facts stop you.

  8. I think you are missing his/her point. While true we didn’t have a income tax till the civil war even you would agree it is a much different country now than when we were founded.The poster was talking about the priorities on how republicans have manage the nations finances.Whoever heard of starting two wars and cutting taxes? You think shit is free? Even the brains behind trickle down has called it snake oil. If you are part of the 1% its great because wealth is being transferred to them . If not then you are a fool for buying into it because methinks you plan on winning the lottery so you can be in that class. NOT HAPPENING.

  9. Any Legislation that helps Americans gets blocked by them & wouldn’t bet they’ll block Bernie Sanders’ new veterans bill.

  10. Congressional Republicans are simply carrying out their marching orders for which they have been duly paid.

  11. This article tells you all you need to know about the GOP. They are selfish, evil creatures that don’t give a damn about the American people at all. And Corporations are not people, I don’t give a damn what the Supreme Court says. Now we can sit here and write our opinions but we also need to get out there and vote these idiots out. Let’s remember what George Nathan said; “Bad Officials are the ones elected by good citizens who do not vote.”
    VOTE..VOTE…VOTE

  12. Straight, PENTECOSTAL/BAPTIST/PRESBYTERIAN, ANGLO, Caucasian male. And lerd help you if you aren’t one of the lemming tribe.

  13. why would they? as long as their constituents believe their bs and don’t like a black president, they can get away with it.

  14. Is it wise for a person who has $100 to spend $110? Or any amount above $100? You know, without a return. Without a promise of some sort of profit. Maybe the foolish or greedy person says yes. And it appears the people who are responsible for this country’s financial decisions are on a foolish spending spree. It’s sad an entire nation of people are living on credit. Democrats and republicans alike have spent money this country has not yet earned. It is not any one persons fault, it is everyone’s fault. Wise budgeting would have allowed college loans to be refinanced without raising taxes. Foolishness keeps pointing the finger and ignoring the real problem. You can’t eat corn you haven’t harvested. I’m more curious about this question than the first; what would this country look like if we cut the credit card and threw it away?

  15. What would this country look like if college was guaranteed like most countries in the west if you qualified? Oh yeah nothing wrong with charging interest and making a profit.
    “In you they take bribes to shed blood; you take usury and increase; you have made profit from your neighbors by extortion, and have forgotten Me,” says the Lord GOD. (Ezekiel 22:12)

  16. What we have here is a people problem. I certainly hope no one believes this is a particular party problem. Anyone who thinks a certain party is honest with all the right answers while all others are dishonest and clueless is naive at minimum. A blind man can see this much

  17. This does NOT have to be a foregone conclusion. If the sheeple in this country would wake up and start taking their responsibility as citizens seriously, this could pass. What if every student and every former student with debt occupied their Republican Senator’s office and refused to move until this bill got a hearing and a vote? But no, people are too busy complaining and watching American Idol or whatever idiot TV show the corporate media try to distract us with.

  18. So, three people vote “no way” on Ronda’s facts that were succinctly listed. Since billionaires most likely don’t read PoliticusUsa, (but should), there are thee willfully ignorant trolls that voted here. To those people: wake up! You’re being duped.

  19. Are people that uniformed? What do taxes have to do with interest rates? Nothing!! “Just like you can refinance your mortgage at a lower interest rate, this bill would let you refinance your student loans” If it is the same as refinancing your mortgage, then why does ANYONE have to pay more taxes because of it? When I refinance, no one else pays more tax because I have renegotiated my loan.

  20. Since you been out of touch lately anything that gets done as far as revenue has to be paid for one way or another. So if you lower revenue you have to find money to pay for it. It doesn’t make much sense but that’s th world we live in. BTW are you one of the millionaires that would have their taxes raise a very small amount? How many homes do you need and really a car elevator?

  21. No, I am not one of the rich that would have my taxes raised a little. As a matter of fact I am unemployed. However, I do know how banking and loans work. Taxes and interest rates are not related.

  22. The reason that revenue is needed is because the vast majority of student loans are government backed. Pell grants and such. That money has to come from somewhere it doesn’t grow on trees. And with the Obama bull market(the Dow could hit 18,000 next week)wealthy Americans are literally overflowing with cash. So levy up top one-percent your country needs you.

  23. Creatures like Eduardo don’t want any of those things. They hate our country and want nothing less than to drag us back to a new Dark Age. No one in Al-Qaeda wants to destroy America as badly as Republicans do.

  24. The bill does not fit in to the “Borrow and Spend” policy and practice of the Republican Party. The United States was brought to the brink of financial and economic collapse by the leadership of the Republican party who touted that “Debt is a good thing” spouted across the waves by Dick Chaney. The “trickle down economics” is actually a “suck to the top economics” in practice. If anything has ever trickled down then where are the jobs? The fact is people have jobs because President Obama and leadership he chose rescued the US economy from a deep and dark depression. The Republicans offer and have offered nothing but smear campaigns in response and continue to be naysayers and obstructionists for the middle class. The have not ever demonstrated any empathy for the poor or poverty stricken. The Republicans have shut down the government, which is the people of the US on multiple occasions and have in fact put people, families out of work “to see what we can get” said Congressman…

  25. Warren’s bill, shows that Dems continue to work to help the average, every day American. It also shows the continued
    contempt that Republican’s have for the average, every day American. We Must Vote……..

  26. Ronda,
    Amerika spends $1 trillion a year on various wealth transfer progams ie welfare. The problem as I see it is not that the government collects enough money, it is that it spends much more than it takes in. Subsidizing college, just like subsidizing mortgages has created massive misallocation of pricing in the market. I went to a public university in the early 1980s at a cost of $3940 per year. My son goes to the same university at a cost of $26000 per year. Same education, same university. The colleges see the students easy access to all this money, they have the perfect feeder system in the progressive school systems and now you have hundreds of thousands of young adults with debt in excess of a trillion dollars. As I see it the colleges are no better than the ravenous companies that want to squeeze every last ounce of profit out of the system. They could care less that they are creating a generation of debt slaves as long as they get their tuition money.
    Bob.

  27. No, we don’t spend $1 trillion on welfare each year
    The federal government spends just $212 billion per year on what we could reasonably call “welfare.” (Even then, the poor have to enter the institution of waged labor to get the earned income tax credit.) And there have been numerous studies showing that these programs, especially things like food stamps, are both very efficient and effective at reducing poverty. They just don’t show up in the official poverty statistics, because that’s how the poverty statistics are designed.
    http://www.washingtonpost.com/blogs/wonkblog/wp/2014/01/12/no-we-dont-spend-1-trillion-on-welfare-each-year/

  28. DJ,
    US Gov has it pegged closer to $600 million:

    http://www.usgovernmentspending.com/welfare_chart_40.html

    This doe snot account for may of the state programs as well as the free medical care in many of the hospitals as required by EMTALA, signed under Reagan.

    If you want to use WAPO they have it at $746 million in 2010;:

    http://www.washingtonpost.com/blogs/fact-checker/post/does-the-federal-government-spend-more-on-welfare-than-anything-else/2013/02/19/fa0042a2-7b0c-11e2-9a75-dab0201670da_blog.html

    As for the EITC, it is defrauded on a massive scale.

    http://www.thesocialcontract.com/reports/eitc_2011apr/eitc_2011apr_part_3_fraud.pdf

    The government does a terrible job at helping the poor, but it is great at building bureaucracies to help the poor. I would much rather just write a check directly to help someone than have it sifted through eh government graft machine.
    Bob.

  29. Details Details (The report concluded that $746 billion was spent on such programs in fiscal year 2010, with about half in the health area, primarily Medicaid.” So if we take out Medicaid I know keeping people healthy is welfare. If you too poor to buy private insurance then just die” My figures is more in line than that ridiculous claim of yours of 1 trillion dollars

  30. the way i see it pell grants and subsidized college loans are not so much a handout as a wise investment in the future of our country. certainly they are a much wiser investment than most of the corporate subsidies. because, college grads tend to earn much more, and therefore tax revenue increases accordingly. but if the grads are crushed under debt they can’t afford to pay then are we not penalizing success? and isn’t that the rationale that the gop is using against raising taxes on the rich, that we’d be penalizing success? typical pretzel logic…..

    and ironically, many of the things people are forced to take out loans to learn, at private for profit schools, are trages which used to be, and should still be, paid for by corporate america through apprenticeships. that model built this country into the greatest in the world. the current model hastens its decline.

  31. A society grows great when old men plant trees in whose shade they know they shall never sit. – Greek proverb

  32. The harm they do is the fruit that you shall KNOW THEM by. THINK about the, to all practical intents and purposes, infinite LOSSES being caused by student debt. Those LOSSES are the harm that defines those who vote against student-debt abatement and given that the losses are so immense, so also is their EVIL.

  33. “This bill doesn’t make college more affordable, reduce the amount of money students will have to borrow, or do anything about the lack of jobs grads face in the Obama economy.”

    Just like every bill (not) offered by the Republicans.

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