Biden Evades Fairness Query on Debt Forgiveness, Swipes at Trump Tax Cuts

Biden Evades Fairness Query on Debt Forgiveness, Swipes at Trump Tax Cuts

President Joe Biden on Wednesday seemingly struggled to answer a question about his own executive order on student loan debt forgiveness.

Instead, he pivoted to an analogy involving the tax cuts enacted under then-President Donald Trump.

When asked if the Biden executive order on debt forgiveness — which would eliminate $10,000 in student loan debt for many debt-riddled collegians — was fair to people who have already paid off their college loans, the president answered in the form of another question:

“Is it fair to people who, in fact, do not own multibillion-dollar businesses, if they see one of these guys getting all the tax cuts? Is that fair? What do you think?” Biden rhetorically asked the White House press corps.

If Biden’s executive order garners passage in the House and Senate, the U.S. government would subsequently forgive $10,000 of student debt from Americans earning less than $125,000 a year; and for Pell Grant recipients, they could be eligible for a $20,000 debt reduction.

A New York Federal Reserve study reveals that eliminating $10,000 in federal debt for every student would amount to $321 billion of federal student loans. It would also vanquish the entire debt balance for 11.8 million borrowers, or 31% of that pool.

The “every” student declaration would seemingly apply to those who have student debt now. For everyone else, past or present, it might mean deriving no benefit from President Biden’s order.

The notion of student debt forgiveness isn’t exclusive to Democratic leaders. In October 2020, then-President Trump proposed that $25 billion of a $1.8 trillion package be dedicated to student loan forgiveness. 

But as Forbes.com wrote back then, “This figure represents only a tiny fraction of the estimated $1.7 trillion in total outstanding student loan debt.”

The Biden administration will also extend the COVID-19 pandemic-linked pause on student loan repayment through 2022, the sixth time such a move has been approved.

Around the time of the president’s news conference, Senate Minority Leader Mitch McConnell, R-Ky., labeled the Biden order a “wildly unfair redistribution of wealth” and a “slap in the face” to those who have already paid off their debt, or worked to avoid student loans altogether.

Conversely, Senate Majority Leader Charles Schumer, D-N.Y., and Sen. Elizabeth Warren, D-Mass. championed the move in a joint statement, saying “the positive impacts of this will be felt by working families across America — particularly in communities of color.”

Wednesday’s statement sparked outrage on social media from those who recalled this January 2020 clip of Warren — while campaigning for the Democratic Party’s presidential nomination — apparently mocking a voter’s one-on-one question about student loan payments that have already occurred.


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Originally Posted on: https://www.newsmax.com/politics/biden-white-house-trump/2022/08/24/id/1084519
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