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Josh Brown: Bernie Sanders Plan To Wipe Out Student Loan Debt: Text & Video Presentation

FYI: One of the signature achievements of the post-millennial capital markets is the driving down of investor costs to near zero, via Reg NMS which did away with the fraction spreads market makers once enjoyed and converted stock exchanges to a decimalized system.

While there have been winners and losers as a result of this and other improvements, no one would argue that the individual investor hasn’t become better off – more access, lower costs, increased liquidity. The concurrent shrinking of the average internal expense ratio at mutual funds and ETFs has been undeniably positive for the end investor trying to save for college, retirement, etc.

Democratic presidential candidate Bernie Sanders is now calling for a transactions tax on investors and traders that would represent a big step backwards for market participants, with the altruistic goal of wiping out the $1.6 trillion in student debt that many believe is holding back the economic potential of millions of young Americans.
Regards,
Ted


InvestmentNews Article:
https://www.investmentnews.com/article/20190624/FREE/190629961/wall-street-lashes-out-at-bernie-sanders-plan-to-pay-off-student

Comments

  • Maybe Bernie should call it the Paying Back America for Bailing You Out in 2008 Tax. Seems these Wall Street guys like socialism when it benefits them.
  • +1. TRUTH.

    Maybe Bernie should call it the Paying Back America for Bailing You Out in 2008 Tax. Seems these Wall Street guys like socialism when it benefits them.

  • The country has precious few resources going forward if we don't get back on track. We would be well advised to do anything we can to encourage education, innovation and inspiration. If the "best and the brightest" can't get a bit of help, how can you expect them, in turn, to use their talent to the advantage of all? We invest in other countries; other countries fund progressive educational systems; a few of other countries best and brightest brought their talents to America producing a return. No longer; we don't want anything but profit from education and a sign telling anyone with education in other countries that they might not be welcome or find opportunity in the America of the non-competitive future.

    Instead of socialism, how about investment. Same dollar and same result; just the politics are different. And we all share all that comes to the US from it's amazing children. I think its abbreviated ROI.
  • I'm not sure at this point exactly how I feel about a blanket proposal to wipe out student loan debt. I'll be the first to admit that the load is onerous but I have no idea how those loan distributions were spent.

    I spent a number of years in college and loans were used BUT I also worked while attending school to hold down those loan amounts to a figure I felt that I could repay when the day of reckoning arrived. It probably didn't help that I also had this thing about owing money and having to pay interest. So hot dogs and ramen noodles it was and I soldiered on.

    When I see the debt figures these days of students leaving college, especially those who attend the Betsy DeVos type schools of 'screw them for all you can while providing no meaningful or usable return' I'm just astounded. Surely tuition costs more these days but what was the rest of that loan money used for? Also, I don't feel compelled to bail out some students "elite" school education which I had no chance of getting because my parents could never afford to "donate" enough to get me admitted even if I would have asked them for help.

    I would like to find solutions here but I'm having trouble zeroing in on a starting point.
  • I'd say cut off the bailout for students at a certain income-level (mom and dad.) Free Community College? Sure. Because the cost will be paid for throughout the tax base. And the best way to make that happen is to get back to a truly progressive tax regime. No capping taxes for millionaires and billionaires at 38%. And giant companies paying NOTHING? Screw that. Right now, the IRS is owned by those giant companies, and the billionaire class. I mean to say that they own the Congress and the Executive--- which together enact laws that in turn, tell the IRS what to do.
  • IMHO - feel this proposal would give the institutions of higher learning another license to steal !! It happens every time.
  • @Gary- Hey, whatcha got against Capitalism?
  • I have nothing against capitalism if the students have their own skin in the game!!
    The students will make their money they old fashion way - they earn it.

    As for the institutions they wont starve!!
  • Yes, our 1939/1940 cohort was very fortunate in still being able to obtain well-paying jobs with only a high school education + some technical training (building trades apprenticeship, mechanical OJT, or military experience for example). Not so now, at least for most people.
  • I think we can hopefully agree that college is just not right for everyone. There's that segment of the population who are simply not cut out for it. For them maybe a few years in the workforce will show or convince them otherwise. For others there's nothing demeaning about time spent in a trade school if that's where their interest lies.

    I'm also convinced that the first two years of college are a waste of time and money for many. I came from a solid high school experience. I had plenty of exposure to the arts along with all of the sciences and math courses. (I admit that I haven't a clue if that's true for everyone). The point I'm trying to make is that my first two years of college were basically a repeat of everything I had done in my junior and senior years of high school. Those that can should be able to test out of that experience. It wasn't an option at the U of MN.
  • edited June 2019
    Got tax the rich folks 70s%(not 30s%) and raise middle class tax from 25% to 40s-50s% to pay... Everyone who is working gotta pay more for more free stuff for one's not working

    Have to give immigrants free Healthcare and free housing ssi since their lives and votes are much more valuable than our vets or our USA citizens. We also should open the borders since we are a living giving and kind supportive nation

    Also everyone who wants their private part modified and birth controls are also free (for both men whom wanted be women and women who desire to be men)

    Think I need register and vote for bary or uncle Joe 4 or 5 times in 2020. I am hoping to turn Texas blue

    Think whoever give /promise most free stuff will get that heelspurs outta WH 2020!!...
    Uncle Joe and bary was 5-10s pt ahead of spurs few days ago

    Wonder whatever happened to whom ever worked the hardest would get the best grade / accepted to good colleges /gradschools and really have to pay for tuition and schools loan once finished... At least this us what i did and my family did and ended up in middle class 2nd Gen Americans

  • edited June 2019
    @johnN Undocumented immigrants don't have access to free healthcare or public housing. Only their children born here that are legal U.S. citizens do--your so-called "anchor babies." But they can't vote as children. Nor can their parents. I believe some Democrats want to provide them access to public healthcare because it's called having "compassion." I know it's a strange word, but it's worth having it sometimes.
  • To carry on with the comment by Lewis it is also far, far less expensive to provide healthcare for everyone on a regular and consistent basis than it is to treat them in emergency rooms which taxpayers subsidize anyway or already. A healthy, properly nourished child or adult is much, much less of a strain on social services. For the life of me I can't understand why this is so hard to comprehend.

    These undocumented people you're so down on John work far, far harder than you think or give them them credit for but they (many) are at the mercy of employers who only want to pay them far less than minimum wages for the privilege of not being reported. Even 45 has been outed for this abuse and he hasn't worked a day in his life.

    I think you need to get out more and for gosh sakes turn off Fox news.
  • edited June 2019
    Or turn off cnbc ABC nyt CBS. Watch PBS very neutral but very boring..
    Imho the most abused most hard workers are immigrants that came to usa from all corners of world

    Everyone-s fav Grandpa Barry and best uncle Joe aunt Elizabeth would surely win 2020 by a mile!! ! Up 7-10pts in polls against spurs
  • Sanders is toast at some point, but sure, raise my taxes, and my kids' too, and none of us is near the top percent, but fortunate regardless compared with many
  • Genuine question. Is there something equivalent to Alternative Minimum Tax for Corporations? If not, why not? I suspect having a minimum tax rate proportional to income (no deductions of any kind) for people and corporations may result in better tax revenues. Just having high tax rate, but ability to reduce it by claiming all kinds of deductions/carry-overs just defeats the purpose.
  • edited July 2019
    Corporations are persons, and therefore entitled to all of the prerogatives and benefits due persons (1), except when an obligation as a person is involved (2), then of course they are not.

    (1) For example, as persons they are entitled to spend whatever humongous amount of cash they deem necessary to bribe propitiate congress so as to obtain whatever outcome they may desire.

    (2) No, they are not subject to any AMT.

    I hope that clarifies the situation.
  • msf
    edited July 2019
    I've never looked at the form, but you might check out Form 4626.
    https://www.irs.gov/instructions/i4626

    But that was then. This is now, and now there's no more corporate AMT. It was permanently repealed as part of the 2018 tax cuts.
    http://www.bowlesrice.com/tax-cuts-and-jobs-act-2018-changes-Alternative-Minimum.html

    Why was that done? As I understand the official story line, corporate tax cuts were made, and made permanent, so that US corporations would be more competitive and to stimulate investment and jobs. Never mind that corporations were already sitting on piles of cash that they didn't know what to do with. Meanwhile, individual taxpayer tax cuts were made temporary, because otherwise the deficit after ten years would be too big and would break Senate rules.
    https://www.businessinsider.com/trump-gop-tax-plan-senate-bill-why-individual-tax-cuts-temporary-2017-11
  • "corporations were already sitting on piles of cash that they didn't know what to do with"

    Please see footnote (1), directly above.
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