The "Tax Deal" hurts millions of low income workers

Northside Action for Justice strongly supported an extension of unemployment benefits. Given that we're in a jobs emergency, emergency aid to the victims of the Wall Street speculators that crashed the economy should be a no-brainer. Congress has never cut off extended benefits when the unemployment rate was this high -- which has been above 9% for a record 20 months.

But the "Tax Deal" cut by President Obama when Republicans held everything else hostage to tax cuts for the rich (or those making over $250,000/yr) is a bad deal for seniors and for low income workers. Many groups have pointed out that reducing social security taxes helps undermine the fiscal solvency of that safety net.

But a recent analysis by the center for economic and policy research shows that, contrary to White House and media proclamations, the deal actually raises taxes on about 50 million Americans -- mostly low and moderate income taxpayers.

So 94% of those over $106,000 income will pay reduced taxes.

But 99.4% of earners under $18,000 will pay higher taxes.

Despite the importance of extending unemployment benefits, it seems like a raw deal.