[O]ne man’s burden is another man’s opportunity. Student debt in the United States now exceeds $1 trillion. Like cigarette duties or state lotteries, debt-financed accreditation functions as a tax on the poor. But whereas sin taxes at least subsidize social spending, the “graduation tax” is doubly regressive, transferring funds from the young and poor to the old and affluent. The accreditors do well, and the creditors do even better. Student-loan asset-backed securities are far safer than their more famous cousins in the mortgage market: the government guarantees most of the liability, and, crucially, student loans cannot be erased by declaring bankruptcy.

For all the calls from the left to tax the rich, there sure are a lot of liberals profiting from very regressive taxes.