Steep education cuts loom as debt-panel deadline approaches


On the domestic side, the law exempts Social Security, Medicaid, and many veterans’ benefits and low-income programs. It also limits Medicare to a 2 percent reduction.

Still, that leaves education, agriculture, and environmental programs exposed to cuts of around 8 percent in 2013, CBO says. For many Democrats, those are cuts worth fighting against, especially if Republicans try protecting defense programs.

The temptation to block the automatic cuts could grow even larger right after the 2012 elections, depending on the results.

The 2001 and 2003 tax cuts enacted under President George W. Bush are scheduled to expire in January 2013. Extending them is a top GOP priority, while Democrats want to let them expire for the highest-earning Americans.

If either party wins White House and congressional control, its members could be ready to reshape both the automatic spending cuts and the tax cuts to their liking.

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