Senate Measure to End Tax Breaks to Pay for Student Loan Bill Stalls

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Legislation to eliminate a few tax breaks to pay for maintaining certain student loan interest rates at their present level failed to advance in the Senate June 6.
The Democratic-backed bill (S. 953) would have raised $8.6 billion over 10 years to keep interest rates on federally subsidized Stafford loans at 3.4 percent for the next two years. President Obama supported the measure, according to a statement of administration policy released by the White House.
The legislation would have generated that revenue by requiring beneficiaries of inherited retirement savings accounts to take distributions within five years of the death of the account holder in most cases; further limiting the deductibility of interest paid by an expatriated entity to related persons, known as earnings stripping; and including oil from tar sands in the list of petroleum products subject to taxes that support the oil spill liability trust fund.
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