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Always a complication and a fight
April 25, 2012 - Jim Anderson
Nothing is ever easy in Washington.
Democrats and now Republicans want to prevent interest rates on government-subsidized student loans from doubling.
President Obama supports a bill introduced Senate Majority Leader Harry Reid, D-Nev., that would keep the rate at 3.4 percent for another year. Under the Democratic plan, the cost would be covered by making it harder for owners of smaller, privately owned companies called S corporations to avoid paying Social Security and Medicare payroll taxes on some of their income.
Republicans, however, have a separate plan to keep the rate at 3.4 percent for another year. To avoid adding to the debt, Republicans plan to tap the money from a fund in the adminstration’s health care law that helps prevent chronic disease.
Here’s a thought. Set the rate at, say, 4 percent for the next three years and call it a day.
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