Although the deal President Obama has brokered with Congressional Republicans is disappointing in many respects, the President won some significant concessions for low-income households. In addition to reviving the extended federal unemployment benefits, the proposed deal includes a two-year continuation of Recovery Act improvements to three important tax credits for low-income families, and a one-year payroll tax cut for all workers.
An analysis released late this afternoon by the Center on Budget and Policy Priorities found that extension of the tax credit improvements, coupled with the temporary payroll tax cut, would keep 2.4 million Americans above the official poverty line, and would lessen the severity of poverty for 18.4 million poor Americans, including 6.9 million children, who would be lifted nearer the poverty line.
Read more about the tax credit changes in a new Wisconsin Budget Project blog post.
