Long-term unemployment is essentially retirement against your will, but without income to pay bills. If you are long-term unemployed then you are forced to spend your retirement savings, yet you are penalized with extra taxes and unfairly high rates. Without a job, you do not qualify for earned income credit. Your tax rate that is higher than that of billionaire Warren Buffett, yet you are hammered with an additional 10% penalty for early withdrawal from your IRA.
We petition for an exemption from the 10% penalty for early withdrawal from retirement accounts for the long-term unemployed. We also petition for lower tax rates for the long-term unemployed. Even better, we ask for a Long-Term Unemployment tax credit that refunds taxes paid in previous years.