Expiration of the Bush tax cuts will hurt the poor worst:
Low-income workers stand to lose the most if lawmakers fail to reach a consensus on the Bush-era tax cuts, according to a new report from the Tax Foundation.
The report states that on Jan. 1 the doubling of the child tax credit, increased standard deductions and income credits and the creation of the 10 percent tax bracket — all of which primarily aimed at non-wealthy taxpayers — will vanish if gridlock persists in Washington.
While wealthier taxpayers pay more in taxes and stand to lose more money if the tax cuts expire, the impact on low-income taxpayers will be far greater because they live on slimmer margins.
Democratic leaders have repeatedly vowed that tax cuts benefiting these taxpayers will be extended beyond their Dec. 31 expiration date. But a similar promise was made last year on the estate tax, and ten months have passed without Democratic leaders following through on that promise.