Politics Plus

Barack Obama is rolling back the regulations under which students are required to repay student loans  Although it took him far to long to realize that Republicans will accept no compromise short of cave-in, he is finally doing what he can to help some of the people lambasted by the Republican Recession and locked out of the American dream by Republican class warfare.

President Barack Obama recalled his struggles with student loan debt as he unveiled a plan Wednesday that could give millions of young people some relief on their payments.

Speaking at the University of Colorado Denver, Obama said that

he and his wife, Michelle, together owed more than $120,000 in law school debt that took nearly a decade to pay off. He said that sometimes he’d have to make monthly payments to multiple lenders, and the debt meant they were not only paying for their own degrees but saving for their daughters’ college funds simultaneously.

"I’ve been in your shoes. We did not come from a wealthy family," Obama said to cheers.

Obama said it’s never been more important to get a college education, but it’s also never been more expensive. Obama said his plan will help not just individuals, but the nation, because graduates will have more money to spend on things like buying homes.

"Our economy needs it right now and your future could use a boost right now," Obama said.

Obama’s plan will accelerate a measure passed by Congress that reduces the maximum required payment on student loans from 15 percent of discretionary income annually to 10 percent. He will put it into effect in 2012, instead of 2014. In addition, the White House says the remaining debt would be forgiven after 20 years, instead of 25. About 1.6 million borrowers could be affected.

He will also allow borrowers who have a loan from the Federal Family Education Loan Program and a direct loan from the government to consolidate them into one. The consolidated loan would carry an interest rate of up to a half percentage point less than before. This could affect 5.8 million borrowers.

Student loans are the No. 2 source of household debt. The president’s announcement came on the same day as a new report on tuition costs from the College Board. It showed that average in-state tuition and fees at four-year public colleges rose $631 this fall, or 8.3 percent, compared with a year ago. Nationally, the cost of a full credit load has passed $8,000, an all-time high… [emphasis added]

Inserted from <CBS>

Of course some will say that this is not enough, and they will be right when they do.  If people want more, they need to give Democrats a majority in the House and a filibuster proof majority in the Senate.

As much as Republicans claim to want to reduce the deficit, it is easy to prove that claim a lie, because every economic plan Republicans suggest would have the exact opposite effect.  Their plans all have one thing in common.  They slash Federal receipts, greatly increasing the deficit.  Rick Perry’s flat tax plan is no different.  It’s just another tax cut for the rich.

The tax plan put forth by Republican presidential candidate Rick Perry would mean a significant reduction in how much money the government takes in, an independent economic expert said Tuesday.

Perry is offering taxpayers two choices – either stick with the current tax system or opt into a new system in which they pay a 20 percent flat income tax. That incentivizes those who would pay less under the current system to stick with it, and those who would pay less under the flat tax plan – largely Americans on the upper end of the income scale – to opt for the new plan.

That would add up to a "substantial" decrease in revenues, says Ted Gayer, the co-director of the Economic Studies program and a Senior Fellow at the Brookings Institution.

Perry has yet to lay out all the specifics of the plan, which makes it difficult to estimate its full impact. But "it’s clearly going to be a reduction in revenues, I think fairly substantial," said Gayer. Many conservative Republicans want to reduce the role of government in society in part by starving it of funds.

In addition to allowing Americans to stick with the current tax code, Perry is maintaining a number of deductions under his flat tax plan, including deductions for home mortgage interest and donations to charity. That cuts against one of the key benefits of a flat tax plan. Proponents of a flat tax say it works because it simultaneously makes the pool of taxpayers larger and makes more kinds of income taxable by eliminating deductions, a concept referred to as "broadening the base." The broadening is diminished under Perry’s plan because many of the current deductions are kept in place… [emphasis added]

Inserted from <CBS>

In addition Perry’s plan eliminates capital gains taxes and estate taxes.  Hedge fund millionaires who now pay only 15% will pay nothing at all.  Ed Schultz covers this item and Perry’s flirtation with birtherism with Jim Moore and David Kay Johnston.

Visit msnbc.com for breaking news, world news, and news about the economy

Of course, to make his plan revenue neutral, Republicans would be forced to slash spending on everything but corporate welfare.

The bottom line is that Republicans insist on lavishing such extreme political luxuries on the 1% that the 99% cannot afford to have them in office.

I presume most of you know that the House seat for Oregon’s 1st Congressional District is vacant, due to the resignation of David Wu.  Oregon has an excellent vote-by-mail election system, and I received my ballot in the mail today, to return postmarked on or before November 8.  Here is the complete list of worthy Republicans.  That was the list.  Here is a rundown on the three main Democratic candidates, and my own endorsement.

…The three leading candidates — state Sen. Suzanne Bonamici, Labor Commissioner Brad Avakian and state Rep. Brad Witt — have been careful to stay positive after being warned by top congressional Democrats to avoid any bloodletting that could weaken their nominee for the special election in January.

They’ve largely echoed the same standard Democratic talking points: save Medicare and Social Security, boost public works spending to create more jobs and pay more attention to the middle class, not the wealthy.

Bonamici plays up her background as a consumer advocate and supporters say it’s time for Oregon’s congressional delegation to include a woman again. Avakian focuses on what he says is his longer record of legislative successes and presents himself in his advertising as "ticked off" by the economic hardship many people are facing. Witt touts his long experience in the union movement and his kinship with average workers.

In their only televised debate of the primary last week — sponsored by The Oregonian and KGW — the three major Democrats agreed a lot. But they have some distinctive views:

Taxes: Bonamici and Avakian stick to the view expressed by President Obama and Democratic congressional leaders that the Bush-era tax cuts should be repealed only for wealthier taxpayers, generally individuals earning more than $200,000 a year. Witt disagrees. He wants the tax cuts repealed for all income levels, saying the revenue could be used to boost public works spending and create more jobs.

Trade: Avakian and Witt denounced free-trade agreements with South Korea, Colombia and Panama, saying they continue to drive American jobs overseas. Bonamici won’t say how she’d vote, explaining that she would examine the agreements’ impact on the district. It puts her a little closer to such major businesses as Intel and Nike that support expanded overseas trade.

Marijuana: Witt wants to decriminalize marijuana, saying it could become a source of tax revenue. Avakian says the feds should let the states set their own policy on marijuana. Bonamici says the issue is up to voters to decide, although in the debate she defended allowing farmers to grow industrial hemp… [emphasis added]

Inserted from <The Oregonian>

Bonamici is ahead in the polls, largely because of her endorsement from Emily’s list, based on her gender.  While I have no problem sending a woman to Congress, the only things that should matter are the candidates’ qualities and positions, not things like gender of race.

I endorse and will be voting for Brad Avakian, because he has the longest and strongest track record of support for Main Street people and progressive issues.  That said, if Oregon elects any one of these three in the January general election, Oregon wins.  All three are highly qualified and worthy of our support.  No matter which one wins the primary, I will strongly support them.