So because there are "expensive" cars in a food bank line, that means the car occupants can easily afford to go to a grocery store and buy the food that they are waiting in a long line to get? There is no logic in that argument, and you have no evidence to support you other than the theory that driving an expensive car = financial ability to easily afford groceries. Maybe that expensive car is a day away from being repossessed and the electric service was just disconnected at home for failure to pay the power bill. If you had the means to buy a $2.50 bag of potatoes, would you willingly wait in a long line to get the same thing for free?
Eating food and having a place to live are not inherent costs of attending college and getting a degree; they are inherent costs of basic living that must be shouldered whether a person is in college or not. Paying tuition to attend college is fundamentally different because this is not an inherent cost of basic living. Surely you see the difference.
I have shepherded multiple children through college. Your statement that I "fail to realize that merit scholarship is given based on merit, not need" is insulting. And if at your daughter's school "most kids who got presidential scholarship that is completely merit based for a full ride are poor kids," it makes me think that in this particular case, there is a need component to these scholarships that you are not aware of. In any case, in the example I previously provided the student came from a wealthy family where the scholarship covering room and board was in no way related to need and resulted in the wealthy family having an extra $15,000 that they didn't need to spend on a dorm room and a meal plan. And, student and parent income is taken into account in determining to what extent a taxable scholarship is taxed.
If you have an issue with scholarships being taxable if they cover certain expenses, your beef is with the federal government and not me. I suggest that you contact your U.S. representative and/or senators to express your displeasure. Your time and energy are being wasted here if one of your goals is to affect any change in this matter. Arguing with me here and demonstrating your lack of awareness does you no favors and gets you nothing.