Student rates

A Worry More Challenging Than Student Loan Debt – Chico Enterprise-Record

Apparently, the lead editorial on President Joe Biden’s $300 billion college loan forgiveness program (or 20% for Pell Grant recipients) didn’t challenge the concept of loan forgiveness, but simply the way it was done (editorial, ER Sept. 1st).

The courts will eventually decide whether or not President Biden had this executive power.

As for the idea of ​​loan forgiveness, however, many working-class conservatives believe it “forces people who didn’t go to college to pay for others who did.” do”.

I agree with conservative talking heads that comparing these loans to the PPE loan forgiveness given to small business owners, including several prominent Republicans, is not equivalent. The PPE was created under the CARE Act in response to the COVD-19 pandemic. As long as they were legally obtained, PEP loans were not expected to be repaid.

A better equivalent to this “I have to pay for others” scenario is the Donald Trump/Republican Tax Cuts and Jobs Act of 2017, which added $2.289 billion to the national debt.

The “true tax rate” of the 25 richest Americans is estimated at 3.4%, while the effective tax rate of the average American is 29.8%. Federal income taxes pay for health care programs, social security, defense and security, the safety net, the national debt, federal retiree and veterans benefits, transportation infrastructure, education and science, and medical research. By saving the richest taxpayers from paying 26.4% of their taxes, who ends up footing the bill? This same working class, of course.

—Mark S. Gailey, Chico