{"id":1980040,"date":"2023-07-21T21:31:02","date_gmt":"2023-07-22T01:31:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/expert-proposes-solution-to-student-debt-tax-the-universities\/"},"modified":"2023-07-21T21:32:50","modified_gmt":"2023-07-22T01:32:50","slug":"expert-proposes-solution-to-student-debt-tax-the-universities","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/expert-proposes-solution-to-student-debt-tax-the-universities\/","title":{"rendered":"Solution to student debt: Tax universities, says expert."},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"&quot;\"><div class=\"counts mashsbcount\">16<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fexpert-proposes-solution-to-student-debt-tax-the-universities%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=1980040&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><div class=\"post_content\">\n<h2>Why Taxing Universities\u2063 Could\u2062 Fund Student Loan Forgiveness<\/h2>\n<p>Less than a month has\u200d passed since the Supreme Court <a href=\"https:\/\/www.theepochtimes.com\/supreme-court-strikes-down-biden-student-loan-forgiveness-program_5364291.html\">struck down<\/a> \u2063 President Joe Biden\u2019s 2022 student loan forgiveness plan as unconstitutional.<\/p>\n<p>Yet, Inez Stepman of the\u200b Independent Women\u2019s Forum points out, the commander-in-chief still got what he wanted that year. Young Americans seeking relief from their debt burden turned out to vote for a\u2064 party that promised it.<\/p>\n<p>\u201cThere\u2019s pretty good polling showing that it did really help the Democrats in the midterms,\u201d Ms. Stepman told The Epoch Times during a July 20 interview.<\/p>\n<p>That political reality is one of multiple motivations for her\u2063 recent proposal (<a href=\"https:\/\/www.iwf.org\/wp-content\/uploads\/2023\/07\/Policy-Focus-Taxing-Universities.pdf\">pdf<\/a>) to fund student loan forgiveness by taxing universities.<\/p>\n<blockquote>\n<h3>A Nuanced Problem<\/h3>\n<p>Ms. Stepman said it\u2019s no surprise that the Left wants to deliver free college at taxpayer expense. The universities are one of their strongholds\u2013and the Left is good at <a href=\"https:\/\/theworthyhouse.com\/2022\/10\/14\/the-concept-of-the-political-carl-schmitt\/\">rewarding \u200cfriends \u200dand punishing enemies<\/a>, including any wealthy conservatives\u2062 who still donate to \u200binstitutions overtly \u2062hostile to their values.<\/p>\n<p>\u201cIf you\u2019re going to be a person of wealth or power in America, you have to sit through the indoctrination of the far-Left, provided by 99 percent of universities,\u201d \u2063she said.<\/p>\n<p>\u201cOn the other hand, though, the Right is wrong to\u2062 talk about this issue of \u200cdebt as though it is still 1983,\u201d Ms. Stepman continued.<\/p>\n<p>Tuition\u2064 costs\u2062 have\u200d climbed steeply in the past half century, rising at almost five times the\u2063 rate of inflation since the early\u200d 1970s, according to a <a href=\"https:\/\/www.foxbusiness.com\/economy\/college-costs-soared-multiple-times-rate-inflation-50-years\">My eLearning World analysis<\/a> of College Board data.<\/p>\n<p>\u201cIt is\u200c functionally \u2063no longer possible for an\u2063 18-year-old to \u2018work their way\u2019 through most colleges and universities unless your parents can cough up the full tuition price or you get substantial financial aid\u2063 from the university,\u201d she said.<\/p>\n<p>Ms. Stepman traces the distorted market for higher education back\u200d to the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-administration-cancels-4-billion-in-itt-tech-student-loans\/\" title=\"Biden Administration Cancels  Billion In ITT Tech Student Loans\">federal student loan programs<\/a> that began as part of Johnson\u2019s Great Society in the 1960s. Universities have been able to raise the price of\u2063 tuition in step with rising \u2064student loan guarantees.<\/p>\n<p>\u201cBecause government-backed loans exist, there\u2019s no \u200bmarket mechanism to check [universities],\u201d she said.<\/p>\n<p>Meanwhile, more and more jobs demand a bachelor\u2019s degree, including some that once only took\u200d a\u200c <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/white-house-releases-list-of-president-trumps-accomplishments-and-it-is-historic\/\" title=\"White House Releases List of President Trump\u2019s Accomplishments \u2013  And It Is Historic!\">high school diploma<\/a>. \u2064Young people\u2062 graduating\u2064 high school may see little alternative to higher education, \u200bespecially\u200c if they\u2019ve absorbed the lesson that college is a \u2063prerequisite for success and happiness in \u200blife.<\/p>\n<p>\u201cAt the end of the day,\u2064 these are adults who have signed out on loans, including myself. But I \u200ddo think that the\u2062 Right sometimes fails to account for how much the Left has changed \u2064the incentives and the policy structure and the way that this entire sector and business \u200boperates,\u201d she said.<\/p>\n<p>\u201cThis is not a free market,\u201d she added.<\/p>\n<\/blockquote>\n<h2>Stepman\u2019s Solutions<\/h2>\n<p>Even if the Biden debt cancellation plan had survived the Supreme \u200cCourt, the status quo would have seen a rapid reaccumulation\u200d of debt.<\/p>\n<p>A 2022 <a href=\"https:\/\/www.crfb.org\/blogs\/how-long-cancelled-student-debt-would-return#:~:text=Projected%20Student%20Debt%20Growth%20After%20Cancellation&#038;text=federal%20student%20debt.-,We%20estimate%20that%20if%20all%20eligible%20borrowers%20receive%20debt%20cancellation,current%20level%20in%20each%20scenario.\">analysis<\/a> from\u200d the\u200d Committee for a Responsible Federal Budget (CRFB) projected that student debt\u200d would return to its then-current levels in a little\u2064 over half a decade. That\u2019s under the cautious assumption that a bailout wouldn\u2019t lead to more and riskier borrowing\u2013one the CRFB acknowledged was unrealistic given how people respond to such \u200bincentives.<\/p>\n<p>\u201cBehavioral changes would mean the portfolio would return to its \u200bcurrent size even faster,\u201d they predicted.<\/p>\n<p>Moreover, \u2063a University \u200dof Chicago study (<a href=\"https:\/\/bfi.uchicago.edu\/wp-content\/uploads\/2020\/11\/BFI_WP_2020169.pdf\">pdf<\/a>) found that <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-silent-on-memo-to-cancel-student-debt\/\" title=\"Biden Silent on Memo to Cancel Student Debt\">student debt cancellation<\/a> is\u200c economically regressive rather than progressive. In other words, it <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/expert-proposes-solution-to-student-debt-tax-the-universities\/\" title=\"Solution to student debt: Tax universities, says expert.\">disproportionately benefits high-income households led<\/a> by people who took\u2062 out loans for expensive professional degrees.<\/p>\n<p>\u201cThey take from the poor\u2063 and give to the rich,\u201d said Ms. Stepman, whose analysis referenced the University of Chicago study and CRFB.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Less than a month ago, the Supreme Court deemed President Biden&#8217;s 2022 student loan forgiveness plan unconstitutional. However, Inez Stepman from the Independent Women&#8217;s Forum highlights that despite this setback, the president achieved his desired outcome that year. Young Americans, hoping for debt relief, showed up to vote.<\/p>\n","protected":false},"author":152,"featured_media":1980041,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","fifu_image_alt":"","footnotes":""},"categories":[543],"tags":[],"class_list":["post-1980040","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-epoch-times"],"fifu_image_url":"https:\/\/cndimages.nyc3.digitaloceanspaces.com\/breaking-news\/wp-content\/uploads\/2021\/01\/IMG_2758-scaled-1.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1980040","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/152"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=1980040"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/1980040\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/1980041"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=1980040"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=1980040"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=1980040"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}