Saturday, June 14, 2014

Lower Interest Rates on Student Loans?

Senate Democrats killed GOP House Bill which tied student loan rates to the Treasury Note 10 Year Rate of 2.6%

Click here for related story [Bill Chappell, NPR]

NPR [National Public Radio] subsidized by taxpayers and oil companies, has become the propaganda organ for the Administration and the Democrats in general -- ever on the attack on anything and everything Conservative/GOP.

Today's headline tells us that those mean old Republicans have killed a bill in the Senate which would have allowed students [and their parents] to refinance their student loans to get substantially lower rates.  But, once again, NPR is acting a purveyor of Democrat propaganda since NPR omits the critical reasons WHY the GOP blocked this bill.

They omit the fact that the House Republicans passed a bill on 23 May 2014 which would tie the interest rates on student loans directly to the interest rate on a 10-year Treasury Note.  That bill was killed by Harry Reid when it arrived at the Senate.

Instead,
Liz Warren, our Native American Senator
[well, she once saw the movie The Last Mohican, thus qualifying her to claim Indian heritage since she lives in New England, as did the Mohicans until Warren's ancestors killed them all]
proposed Tax Increase legislation in which she included one provision by which students [or their parents] could refinance their education loans.

Now, if that were the sole element in the legislation, it would have flown through Congress and straight to the Oval Office for signature, even though the earlier House Republican Bill was far more effective in reducing student loan interest rates; the GOP bill tied Student Loan Rates to Treasury's Ten-Year Note Rate, currently at 2.59%.

But, buried in the Democrat legislative proposal were lots of new taxes on "The Rich".
You know, all those "One Percenters" [of whom are many NPR luminaries and and executives].

We agree that these loans should be available for refinancing at a lower rate.
What NPR omitted from their story, however, are the details of the provisions to raise "Taxes on the Rich" to compensate the federal costs of the program causing the GOP [and conscientious Democrats] to block it.  
We call that Lying By Omission -- the basis for "Grey Propaganda".
We don't need more "taxes on the rich" -- which we've noted quickly trickle down to become increased taxes on the Middle Class. Furtively mixing in long-term taxes with otherwise appealing measures of public benefit has  been a long-term propaganda gimmick by the DNC to increase taxes for everyone under the guise of targeting the very wealthy
So, think this one through -- and read the legislation, not just the emotional headlines!
Al's kiss ended his marriage
Al Gore introduced a similar "Tax on the Rich" when he was a senator; but, due to inflation, his "Rich Category" back then now encompasses a large percentage of the Middle Class -- into which well-educated students [and their parents] will find themselves -- i.e., with higher taxes and fewer deductions.
Inflation does that.  For example, in 1960, you could buy a nice, upscale suburban house for $20,000 with an income of $10,000 per year; if you earned $35,000 a year, you were considered wealthy.  By 1980, that same house would have cost $80,000, and your income would have been $30,000 a year; you'd have been considered rich if you earned $50,000 a year.  Today, you're at the bottom end of the Middle Class if you earn $50,000 a year.

[Al doesn't pay much in taxes since he routes all his income through a trust fund which funds his house, his cars, and all his expenses; the trust fund is likely structured as a non-profit, so there would be a minimal tax liability.]
Gore's AMT [Alternate Minimum Tax on "the rich"] takes away many of these Middle Class deductions
1) standard deduction,
2) personal exemptions,
3) home equity mortgage interest,
4) miscellaneous deductions such as employee business expenses, and
5) the bargain element of any incentive stock options you exercised
Now, we suggest one alternate and very effective means to offsetting the cost to the federal government for such a program, instead of increasing taxes, would be to simply cut the subsidies and grants to NPR -- or just cutting the salaries of the all the "One Percenters" in NPR [Google NPR salaries to see who makes in the mid- 6 figures, or even 7 figures.