Cuts to Needy to Fund Tax Cuts for Rich

The neo-cons call their $40 billion in cuts to the needy deficit reduction, but look at the planned expansion of $70 billion more in tax cuts for the wealthy, and you get the picture of why there is good cheer and congratulations all around for Republican leaders this holiday season. Included in the cuts is a $12.7 slice out of college financial aid and cuts to HeadStart. From the Times:

WASHINGTON, Dec. 21 - Nearly one-third of all the savings in the final budget bill comes from student aid, the Congressional Budget Office said Wednesday.

Under the bill, college students would pay higher interest rates on loans. Many banks will receive lower subsidies. And the Education Department will work with the Internal Revenue Service to ferret out students and parents who underreport incomes on financial aid applications. The budget bill is estimated to save $39.7 billion over the next five years. Student aid accounts for $12.7 billion of the savings, or 32 percent.

The rest here.