Democratic presidential candidate Elizabeth Warren said she will forgive all student loan debt on day one if she wins the White House this November.
Moreover, Warren said she would not need congressional approval to do so.
The Washington Examiner reports Warren argues the Department of Education already has the power to cancel the student loan debt of 42 million Americans, something she would choose to enact in the executive office.
“We can’t afford to wait for Congress to act,” Warren said during her announcement, which she said would forgive up to $50,000 for nearly all student loan borrowers.
From the report:
The Massachusetts senator said that the Education Department, through the Higher Education Act of 1965, already has the authority to cancel student debt.
The announcement builds upon her plan, introduced last year, to cancel a majority of the country’s outstanding student loan debt. The relief, intended for households making less than $100,000, would wipe out educational debt entirely for more than 75% of people, according to the campaign.
She has said she plans to offset the cost of canceling student debt through her wealth tax on the richest people in the country.
According to the Board of Governors of the Federal Reserve System, Americans owe more than $1.6 trillion in student loan debt.
Warren, pitching the student loan forgiveness, is having to contend with other Democratic candidates promising their own “free” handouts.
Joe Biden, Bernie Sanders, and Warren each are advocating for free healthcare systems while Andrew Yang is pitching a $1,000 per month stipend for all Americans.
The offset for these “free” programs will come by these Democrats raising tax rates on the richest demographic.
From the Washington Examiner:
Sanders’ wealth tax plan would raise $4.35 trillion over 10 years, economic advisers to the campaign estimate, while Warren’s plan would raise approximately $2.75 trillion over a decade. Warren also plans to raise an additional $1 trillion for her new “Medicare for all” plan by doubling her wealth tax on the ultrarich.
Sanders’ wealth tax plan would tax households with a net worth above $32 million, which is about 180,000 households, the top 0.1%, starting at a 1% tax rate and rising to 8% for married couples with more than $10 billion in wealth. In contrast, Warren’s plan would levy a 2% wealth tax on assets worth more than $50 million, and a 6% tax on fortunes worth more than $1 billion, affecting approximately 75,000 families.