Late Night Irony

At 4:40 am Saturday morning, a lame duck Republican Congress passed its final piece of legislation -- a series of mainly middle class tax law extensions that will increase the deficit by $38 billion over the next five years, according to the Congressional Budget Office. The higher ed centerpiece of the under radar bill is an extension of $2,000 to $4,000 in tuition tax deductibility, depending on income.

Almost a year ago, the same Republican Congress passed a reconciliation budget bill to decrease the deficit by almost the same $38 billion over five years, also according to the Congressional Budget Office. (To be precise, it was estimated at $39.7 billion.) The higher ed revenue centerpiece of that very public deficit reduction bill was an increase in college loan interest rates for parents who borrow for undergraduate students and a channeling of excess student loan borrower interest payments through lenders onward to the U.S. Treasury.

Heres a brief summary of the tax provisions in Saturday mornings bill:

* Extended tax deductions for:

- Higher ed expenses: Individuals who earn less than $65,000, or couples that earn less than $130,000, can deduct up to $4,000; Individuals who earn between $65,000 and $80,000, or couples that earn between $130,000 and $160,000, can deduct up to $2,000

- Classroom supplies for teachers

- State and local sales taxes (for individuals from states without a state income tax)

* Extended tax credits for:

      - Corporate grants or contributions that support university research

- Hiring welfare recipients

- Alternative energy producers and purchases of solar energy equipment

* Expanded federal funding for health benefits of retired coal miners at a cost of $5 billion over 10 years

Further details can be found here.

Heres a summary of the provisions in the Deficit Reduction Act passed almost one year ago:

* Approximately $12.7 billion shifted out of the federal student loan program and to the U.S. Treasury

* $5 billion cut in projected Medicaid spending, and $6 billion cut in projected Medicare spending

* Increased work requirements for welfare recipients

• Eliminated the federal match for child support spending

Further details can be found here.

Saturday mornings bill passed with little public attention and even less political benefit. In contrast, the Deficit Reduction Act, particularly that bills student loan changes, were used as a rallying cry by higher ed activists and Democrats.

The Lord may giveth, and the Lord may taketh. But in politics, its a lot easier to giveth than taketh.