March 3, 2021

Student Loan Cancellation Could Be Funded With This 1 Thing

Student Loan Cancellation Could Be Funded With This 1 Thing


Student loan cancellation could be funded with this one thing.

Here’s what you need to know.

Student Loans

Sen. Elizabeth Warren (D-MA) knows what is. So does Sen. Bernie Sanders (I-VT). You may too. You can call it an Ultra-Millionaire Tax, or wealth tax, and if Congress adopts this new proposal, there could be enough money to cancel student loans and make college tuition-free. Sanders and Warren have two of the most vociferous advocates for wide-scale student loan cancellation. Now, with the introduction of the Ultra-Millionaire Tax Act in Congress, Warren has renewed her call to institute a new tax on the wealthiest Americans. Here’s how the wealth tax would work (hint: it depends how much wealth you have):

  • 2% annual wealth tax, or 2 cents for every dollar, on wealth above $50 million
  • 3% annual wealth tax, or 3 cents for every dollar, on wealth above $1 billion

For examples, billionaires like Amazon’s

AMZN
Jeff Bezos could pay $5 billion a year in taxes under this proposal. If you have less than $50 million, you wouldn’t be subject to this wealth tax. How much money could a wealth tax raise? Answer: $3.75 trillion over 10 years, according to Warren. Approximately American 100,000 families would be impacted. Sanders and Warren say that a wealth tax not only would boost revenue for the federal government to spend on education and infrastructure, but also help decrease inequality that has grown as a result of the Covid-19 pandemic.




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