College students pay for tax cuts


The money has to come from somewhere. You can’t simply “cut taxes in the face of huge deficits”:http://www.philly.com/mld/inquirer/news/editorial/14695544.htm and expect no consequences. With the “ridiculousness of the Laffer curve”:http://en.wikipedia.org/wiki/Laffer_curve (or Bush’s implementation of it) being exposed every day and “record profits”:http://www.mercurynews.com/mld/mercurynews/business/14697409.htm&cid=1106753114&sig2=zbwt5vlhdMU7IGZMZcJ_Pw at oil companies, you’d expect some less mind-bogglingly stupid deficit reduction strategy.

But no. Here it is. Wait for it: “charge college students”:http://www.ucsdguardian.org/cgi-bin/news%3Fart%3D2006_05_30_02&cid=0&sig2=q_5Hxg7FHq_yMKTfZZFkKQ “higher interest rates”:http://www.shns.com/shns/g_index2.cfm%3Faction%3Ddetail%26pk%3DSTUDENTLOANS-05-30-06&cid=1106823200&sig2=xQ8SStvLZ-zv8gCJIoH2tA. That’s right, as part of the Deficit Reduction Act, we can’t bring ourselves to stop the tax-slashing on rich companies, but we are willing to charge more for people who want an education?

Perhaps it is a valid argument that student loan rates and guarantee fee waivers are too generous. I doubt it, but I will entertain the possibility that, in the face of record deficits and debt, we should take that step. However, let’s place this in context:

  • record profits for oil companies
  • “$70 billion tax cuts”:http://seattletimes.nwsource.com/html/nationworld/2002986402_taxcuts11.html that will

    Democrats also cited a joint study by the Urban Institute and the Brookings Institution — two center-left think tanks — that shows taxpayers with incomes greater than $1 million per year winning tax cuts of $42,000 under the bill while families with incomes of $50,000 a year would average a $46 tax cut.

  • record debt
  • record deficits

I’m for tax cuts as much as the next guy, but as part of a sensible economic strategy. This strategy is not sensible. This is a strategy of a government that cares more about millionaires than it is about people who go to school to become more productive members of society. Think about it – Rep. McDermott may think of $41,000 as an all-expense-paid vacation, but a state college student would think of it as an education for life.

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