Student Loan Forgiveness and The Ghost of John Kline, (Who?)

Rep. John Kline

I know and you know that if a Democrat president signed a bill tomorrow giving every kid a pony, every hard-working goober a shiny new truck and every family a week’s pass to DisneyWorld, Republicans would leap up and howl about how unfair all that is to … kids who wanted a dog, guys who just bought a new truck and families who agree with Ron DeSantis that DisneyWorld is a woke cesspool of transgender grooming.

As the parent of a (fully employed) kid who stands to get roughly $8900 wiped off his monthly bills, I am pleased with Joe Biden’s long brewing decision to wipe out chunks of federal loans. It is certainly a lot of money — up to $500 billion by some estimates — and I don’t see what if anything it does to suppress the rampaging rate of tuition increases. But hey, removing $8900 in bills from mostly middle-class family ledgers counts as a good day to my way of thinking. Those people will almost certainly turn around and (inflation hysteria alert!) spend it on something other than a check to the government.

But while we’re listening to the usual hytperbolic ranting from the usual suspects — Marjorie Taylor Greene, (a bail out for Ivy League brats!), Ohio Senate candidate J.D.Vance, (so unfair to D+ kids who couldn’t get accepted to Hillbilly Ellegy Community Bible College!) and Mitch McConnell (a reckless giveaway to the takers!) let’s pause and consider Minnesota’s own John Kline.

You say you’ve already forgotten old John? The guy who parked himself in Congress representing southern Minnesota’s Second District for 14 years? The guy whose most noteworthy accomplishments were hoovering up prodigious amounts of campaign contributions from for-profit colleges? In turn for proposing more and more legislation that let those, um, conservative benefactors, burrow ever deeper into taxpayer-supported federal guaranteed loan programs? Where they mined fat profits off their hefty tuition costs? While quite often delivering dubious-to-worthless degrees to students then saddled with serious decades-long debt?

That guy.

Here’s a quote from a (U of M) Minnesota Daily editorial back in Kline’s day: “Kline and two others introduced the bill, titled ‘Supporting Academic Freedom through Regulatory Relief Act’, July 10. [Think about that name for a second as you read on.] It would prohibit the Obama administration from restricting federal student aid from schools whose students graduate with lots of debt and have low repayment rates. The for-profit college industry became the subject of much criticism after a 2012 investigation by the Senate Health, Education, Labor and Pensions Committee revealed excessive tuition prices, abhorrent recruiting practices, poor student outcomes and wasteful use of taxpayer dollars. The investigation reported taxpayers had spent $32 billion on companies that run for-profit colleges, but the majority of students who enrolled later dropped out. Federal data also shows that a majority of for-profit colleges receive more than 70 percent of their revenue from U.S. government programs.”

Point being — and I realize I don’t have to point this out to you, dear informed reader — but the howling of today’s MAGA-nauts about the “unfairness” of Joe Biden’s “giveway” is 99.9% pure hypocrisy and bad faith. They led the fight to game the federal student loan program, which certainly did not drive tuition costs anywhere but up while saddling thousands of kids from “hard-working, middle-class families” with a mountain of debt and a generally value-less degree.

And THAT is before we mention ol’ Mitch’s signature accomplishment in the Trump years, namely the $2.3 trillion worth of tax cuts Republicans gave away to, you know, “benefactors”, “productive Americans” and people who don’t blink at $30 cocktails at the 19th hole of their private club. [If you’re scoring at home that’s four times the size of Biden’s student loan forgiveness] Maybe you bought a new Porsche with your winnings off that sweet deal, but my taxes jumped up about $900 the next year.

So, as usual, let’s ignore the raging of cynical fools.

Bottom line here is that I suspect Republicans will go hunting for a judge who will slap an injunction on Biden’s executive decision. And, whether it stands or not, loan forgiveness will do next to nothing to stall out the 130% increase in tuitions since 1990.

Oh, and one more thing, entirely unrelated I’m sure, did you see where the University of Alabama just signed football coach Nick Saban to a contract extension worth $94 million over eight years?

And have you forgotten that the highest-paid public employee in the vast majority of states is a … basketball or football coach?

The Applause Line You Won’t Hear At Trump’s Minnesota Tax Day Rally

President Donald Trump is coming to Minnesota today.  That means we’ll be treated to lots of bullying of Representative Ilhan Omar, crowing about the “exoneration” that the Special Counsel specifically has said was not an exoneration, and vilifying of families fleeing desperate conditions for a better life in America.

And you thought there was a cold wind blowing into Minnesota last week?

Since it’s Tax Day, we’ll also be hearing lots of bragging from the President about his tax cut law.  But you probably won’t hear him mention that his tax law, which was dutifully supported by every Republican in the Minnesota congressional delegation, led to twice as many corporations paying $0 in taxes compared to the period before the Trump tax cuts.  Here is an excerpt from an NBC analysis.

At least 60 companies reported that their 2018 federal tax rates amounted to effectively zero, or even less than zero…according to an analysis released today by the Washington, D.C.-based think tank, the Institute on Taxation and Economic Policy (ITEP). The number is more than twice as many as ITEP found roughly, per year, on average in an earlier, multi-year analysis before the new tax law went into effect.

Among them are household names like technology giant Amazon.com Inc. and entertainment streaming service Netflix Inc., in addition to global oil giant Chevron Corp., pharmaceutical manufacturer Eli Lilly and Co., and farming and commercial equipment manufacturer Deere & Co.

“Instead of paying $16.4 billion in taxes, as the new 21 percent corporate tax rate requires, these companies enjoyed a net corporate tax rebate of $4.3 billion, blowing a $20.7 billion hole in the federal budget last year.”

“The specter of big corporations avoiding all income taxes on billions in profits sends a strong and corrosive signal to Americans: that the tax system is stacked against them, in favor of corporations and the wealthiest Americans,” Gardner wrote in the report.”

The next time you hear Trump or other Republicans say there isn’t enough money to help seniors, children, disaster victims, patients, farmers, disabled people, veterans, students, parents, and dislocated workers, remember this report and these lavish corporate handouts that are blowing an enormous hole in the federal budget.

I’m pretty sure “and we doubled the number of corporations paying zero taxes” is not likely to be an applause line that we will hear from President Trump at today’s Minnesota Tax Day rally.  So I thought I’d do the President a favor and promote that particular accomplishment here.