On Tuesday, Senator Elizabeth Warren (D-MA) , growing more and more desperate as she slides down the polls in the Democratic presidential race, offered a plan that was bludgeoned by Senator Ted Cruz (R-TX) once he got wind of it. Warren suggested that on the first day in office after she were elected president, she would cancel student loan debt for up to 42 million Americans and simply ignore what Congress had to say about it.
As The Washington Examiner reported, “The Democratic presidential candidate said, in a plan released Tuesday, that she would direct her secretary of education to “compromise and modify” federal student loans consistent with her plan to cancel up to $50,000 in debt for 95% of student loan borrowers.”
Warren bragged on Twitter:
When I was elected to the Senate, I used every opportunity and tool available to ease the burden of student debt. I fought to lower interest rates, refinance loans, and hold loan servicers and debt collectors accountable for breaking the law and hurting borrowers … Understand this: The Department of Education has broad authority to end the student loan debt crisis. When I’m president, I plan to use that authority.
Pulling out her identity politics card, she stated, “Canceling student loan debt is a racial justice issue.” Warren pontificated that she would simply ignore Congress, stating, “We have a student loan crisis—and we can’t afford to wait for Congress to act. I’ve already proposed a student loan debt cancellation plan, and on day one of my presidency, I’ll use existing laws to start providing that debt cancellation immediately.”
Cruz fired back on Twitter, “Which clause of the Constitution gives a President the authority to give away a trillion $ w/o Congress? And if you like this policy, how would you feel if/when a GOP president does it for something you don’t like? Here’s a better idea: follow the Const & don’t be a dictator.”
Which clause of the Constitution gives a President the authority to give away a trillion $ w/o Congress? And if you like this policy, how would you feel if/when a GOP president does it for something you don’t like? Here’s a better idea: follow the Const & don’t be a dictator. https://t.co/HT5pTEXxGp
— Ted Cruz (@tedcruz) January 14, 2020
Warren has said she would make up the money lost from canceling student debt by her wealth tax. In a late November Democratic presidential debate, she claimed, according to NBC News, “I have proposed a 2-cent wealth tax. Your first 50 billion is free and clear — but your 50 billionth and first dollar, you gotta pitch in 2 cents, and when you hit a billion dollars, you gotta pitch in a few pennies more.”
But as The Daily Wire pointed out, “Warren has actually proposed a 2% surtax on folks with a net worth over $50 million, and a 6% on people with more than $1 billion. Her initial plan included 3% tax on billionaires, before she upped it to 6%.”
The Washington Post noted, “Warren’s “Ultra-Millionaire Tax” would apply to households with a net worth of $50 million or more, essentially the wealthiest 75,000 households. They would be charged 2 percent of every dollar of net worth above $50 million, unless they’re billionaires. Households with $1 billion or more in assets would start paying 3 percent on assets above $1 billion. At least that was in Warren’s first iteration of her tax plans. She said this tax would raise $2.75 trillion over 10 years.”