New tax law may hold a surprise for working poor, By Tim Lockette, January 20, 2011, Anniston Star: “When President Barack Obama and congressional Republicans cut a deal on the extension of Bush-era tax cuts last month, the move was billed as a tax reduction for all. But the working poor may find an unpleasant surprise in their paychecks this month, says one tax expert. ‘If you’re a low-wage earner, you’ll be worse off, as will about 50 million households,’ said Roberton Williams, a scholar at the nonprofit Tax Policy Center, which is run jointly by the Urban Institute and the Brookings Institution. ‘You’ll probably see the effects of the change in your next paycheck.’ The Star contacted Williams after a reader pointed out that her first January paycheck was actually smaller than her paycheck from last year – despite a recent compromise tax bill that was widely interpreted as a tax cut. Republicans and Democrats sparred throughout December over extension of Bush-era cuts to income taxes, which were set to expire Dec. 31 of last year…”
Poverty-related issues in the news, from the Institute for Research on Poverty