Economy Could Suffer If Tax Cut, Jobless Aid End

tax cut unemployment benefits economy
tax cut unemployment benefits economy

By Christopher S. Rugaber

WASHINGTON -- A tax cut that reaches 160 million Americans and government aid for the long-term unemployed will expire at the end of the year - sucking $165 billion out of the economy next year - unless Congress takes action.

Economists hoped the so-called congressional supercommittee would decide whether to extend both measures. But the committee couldn't even agree on how to reach its main goal, cutting $1.2 trillion from the federal budget deficit.