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The Pay-for Republicans have a plan to pay for Student Loan Relief ... take it from Health Care ...

Republicans jam Tom Harkin on preventive health fund
by David Nather and Jennifer Haberkorn, -- 4/27/12

As chairman of the Health, Education, Labor and Pensions Committee, Harkin largely wrote the preventive health sections of the Affordable Care Act, including the prevention fund that Republicans dubbed a “slush fund.” But he’s also working on the Senate student loan bill, so House Republicans may well have to go through him to get something that can be signed into law.

That may not be the plan, though — and top House Republicans know they’ve picked one of the most vulnerable parts of the health care law as a target.

After all, the Prevention and Public Health Fund has been raided before — as House Speaker John Boehner is reminding everyone who will listen. The payroll tax cut extension, which Obama signed into law earlier this year, cut $5 billion out of the fund. And Obama’s own budget proposal this year would have slashed it by $4.5 billion. House Republicans want to wipe out the rest of the $11.9 billion that’s slated to go into the fund over the next decade.

If Obama and the Democrats wouldn’t stick up for the preventive health fund before, Republicans reasoned, how can they fight a student loan bill over it now? “I think they’ve made clear the precedent here,” Boehner said at a Thursday press conference.

Funny isn't it, how Republicans only worry about paying for things -- when it benefits the young, the poor, seniors, or the workers in this country.

Huge tax cuts to Top 1 Percent?  well then it's a Free-for-all.

No questions asked ...

The Obama Administration have a different plan to pay for Student Loan Relief ... close a Corporate Tax Loophole ...

White House: Closing tax loophole could fund student loans
by Jeff Mason; Editing by Jackie Frank, Reuters -- 4/24/2012

The White House said on Tuesday that it was reviewing whether a small business tax loophole should be closed to pay for an extension of low interest rates on student loans that President Barack Obama wants Congress to deliver.

The loophole allows some shareholder-employees of so-called "S corporations" to avoid paying the Medicare payroll tax on their earnings.

Carney said that closing the tax loophole was among a variety of potential ways to pay for the estimated $6 billion cost of a one-year extension of the loan rates, which otherwise will double on July 1 to 6.8 percent.

An S-Corporation does not pay corporate taxes but passes income through to the individual shareholders, who can report it as profits rather than wages in order to lower their tax burden.

The President actually knows the value of a well-educated work force, who are NOT saddled with mountains of debt, when they start out in life.  He's been there.

(The Republicans, not so much.)


And then, you’ve got the spokesman for the Speaker of the House who says, we’re -- meaning me, my administration -- we're just talking about student loans to distract people from the economy.  Now, think about that for a second.  Because these guys don’t get it -- this is the economy.  (Applause.)  This is the economy.  This is about your job security.  This is about your future.  If you do well, the economy does well.  This is about the economy.  (Applause.)

What economy are they talking about?  You are the economy.  If you’ve got skills, if you’ve got talents, if you’re starting a business, if companies are locating here in Iowa because it’s got a well-trained workforce, that’s the economy.  That’s how we’re going to compete.  Making sure our next generation earns the best education possible is exactly America’s business.  (Applause.)  Making sure that education is available to everybody and not just the few -- that is America’s business.  Our future depends on it. (Applause.)

Remarks by President Obama on college affordability, University of Iowa, April 25, 2012
by Transcripts Editors for Transcripts and Documents -- Apr 25, 2012

To see that great exchange, watch in the opening of this video clip:

The Ed Show -- Interview with Governor Pat Quinn (D-IL) -- Apr 25, 2012

link to video

Republicans would rather put their trust in tax cutting, anti-Education hacks, like Scott Walker,

-- than the Future of America -- our intelligent, motivated, cash-strapped students -- looking for a little help.  So that they can hit the ground running -- and build that Future ...

The Republicans just want to put Corporations and the Wealthy FIRST, as per usual.

And that is why they must be sent packing in November.

The Corporations and the Wealthy really DON'T need any more help.

The Corporations-First Republicans ... just. don't. get it!

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Comment Preferences

  •  Tip Jar (6+ / 0-)

    What is necessary to change a person is to change his awareness of himself.
    -- Maslow ...... my list.

    by jamess on Fri Apr 27, 2012 at 08:25:37 AM PDT

  •  This part is misleading (2+ / 0-)
    Recommended by:
    johnny wurster, VClib
    The loophole allows some shareholder-employees of so-called "S corporations" to avoid paying the Medicare payroll tax on their earnings.
    As I explained elsewhere, S-Corp shareholders who also work in the business already pay Medicare taxes on their earnings.  The IRS has pretty strict rules about designating what are earnings -- earnings have to be what someone in that position with that experience would earn.  So, if you borrowed $30,000 to open a restaurant, and you are the chef, your earnings are what you get for being a chef (based on IRS rules about what reasonable earnings for that position would be) and, if the business makes a profit after paying all expenses (including your salary), you get shareholder distributions, which are NOT earnings but reflect the return on your investment - investment income like anybody else's investment income.  A shareholder/worker thus has two kinds of income - earned income, and investment income - and pays medicare taxes on earned income like everybody else, and does not pay taxes on investment income like everybody else.  

    This is actually a proposal for small business owners to pay Medicare taxes on investment income, NOT earned income.  That's a significant departure from what Medicare covers -- no other investment income is subject to Medicare taxes.  I'm fine if the Democrats want to make that proposal, but I'm not fine with being misleading about it.  If Democrats want to stand by their proposal, they should at least be honest about what they are proposing.  I have no respect for people who try to win political battles by misleading the public about their proposals.  That framing is no better than Republicans calling their "pay-for" source a "slush fund."  

    •  SO (0+ / 0-)

      how would you pay for

      Student Loan relief?

      as if it really needs to be "paid for"

      the interest rates to be raised, would be "future earnings" to the General Fund.

      What is necessary to change a person is to change his awareness of himself.
      -- Maslow ...... my list.

      by jamess on Fri Apr 27, 2012 at 08:41:16 AM PDT

      [ Parent ]

      •  From a political perspective? (1+ / 0-)
        Recommended by:

        Frankly, the "Buffet Rule" -- the 30% effective tax rate on all income beginning at $1 - $2 million -- might pay for a large part of student loan interest.   That really is taxing millionaires and billionaires.  I don't think it raises enough money, though -- only maybe $3 billion a year.

        This, on the other hand, is a straight-up tax on the investments of small business owners -- and, by law, we're talking ONLY about small businesses, NOT big corporations -- and I don't think that's a good play even from a political perspective.   In this case, if Republicans want to say "Democrats are increasing taxes on small businesses, and small businesses only," they'd be exactly right.  That's exactly what this is.    

        But, at the VERY least, If Democrats want to propose this "pay-for," I expect honesty about the proposal. This is not what the Democrats are pitching it as.  

  •  Thnaks for calling out another GOP lie (2+ / 0-)
    Recommended by:
    jamess, shaharazade

    I just heard the Prevention and Public Health Fund called "the President's slush fund" on CNN.

    It's so much like whack-a-mole, but we can't put away our hammers, ever.

    Eliminate tax breaks that stimulate the offshoring of jobs.

    by RJDixon74135 on Fri Apr 27, 2012 at 08:46:02 AM PDT

  •  I am so glad that President Obama gets it (0+ / 0-)

    I'm fired up and ready to go. Game on!!!!!!

    "First they ignore you, then they laugh at you, then they fight you, then you win." --Gandhi

    by alaprst on Fri Apr 27, 2012 at 12:04:42 PM PDT

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