Consumer Spending Plummets After Payroll Tax Increase...

[hazlnut]

When President Barack Obama and Congress agreed to increase the federal payroll tax by two percent to temporarily avert the so-called fiscal cliff in January, Americans were left with less money to spend. Now, some of the country's largest companies are seeing sales plummet as a result.

On top of high gas prices, job uncertainty, and stagnant wages, the payroll tax cut expiration, which increased that tax by 2%, will "ding a household with $65,000 in annual income $1,300 this year." Citigroup estimates the payroll tax increase will take "$110 billion overall out of consumers' hands."

According to the Wall Street Journal, companies like WalMart, Burger King, Kraft Foods, and Tyson Foods have said they are lowering earnings forecasts and "adjusting sales and marketing strategies, expecting consumers with smaller paychecks to dine out less and trade down to less expensive purchases."

Even worse, these companies believe the "changes could be long-lasting and are revamping operations" to cater to a consumer base that is spending less, which does not bode well for the sputtering economy.

Retail experts agree, telling the Journal that what happens at companies like WalMart is often a leading indicator for the rest of the retail economy.

The U.S. Commerce Department estimated sales in January "rose at their smallest rate in three months," and companies like WalMart and Burger King do not expect sales to get better anytime soon.

Consumer Spending Plummets After Payroll Tax Increase

Don't use fucking breitbart to get your economic analysis.

American Consumers buy more than they can afford. In a real market, people buy what they need and what they can afford.

The economy needs a major reset and the money stuck at the top 1% is going to have to be redistributed. American families should not be maxing out their credit cards to take their kids on vacation. That 20% a year we spend on health care is killing us. Subway and Papa John CEO's are going to have to sell off one or two of their many vacation homes and only take company employees middle and lower management should be getting stock options. Spread the wealth around.

For 3+ decades wealth has trickled up, we can no longer sustain an economy in which the average CEO make 475 times what the average worker makes.

 

[paulitician]

When President Barack Obama and Congress agreed to increase the federal payroll tax by two percent to temporarily avert the so-called fiscal cliff in January, Americans were left with less money to spend. Now, some of the country's largest companies are seeing sales plummet as a result.

On top of high gas prices, job uncertainty, and stagnant wages, the payroll tax cut expiration, which increased that tax by 2%, will "ding a household with $65,000 in annual income $1,300 this year." Citigroup estimates the payroll tax increase will take "$110 billion overall out of consumers' hands."

According to the Wall Street Journal, companies like WalMart, Burger King, Kraft Foods, and Tyson Foods have said they are lowering earnings forecasts and "adjusting sales and marketing strategies, expecting consumers with smaller paychecks to dine out less and trade down to less expensive purchases."

Even worse, these companies believe the "changes could be long-lasting and are revamping operations" to cater to a consumer base that is spending less, which does not bode well for the sputtering economy.

Retail experts agree, telling the Journal that what happens at companies like WalMart is often a leading indicator for the rest of the retail economy.

The U.S. Commerce Department estimated sales in January "rose at their smallest rate in three months," and companies like WalMart and Burger King do not expect sales to get better anytime soon.

Consumer Spending Plummets After Payroll Tax Increase

Don't use fucking breitbart to get your economic analysis.

American Consumers buy more than they can afford. In a real market, people buy what they need and what they can afford.

The economy needs a major reset and the money stuck at the top 1% is going to have to be redistributed. American families should not be maxing out their credit cards to take their kids on vacation. That 20% a year we spend on health care is killing us. Subway and Papa John CEO's are going to have to sell off one or two of their many vacation homes and only take company employees middle and lower management should be getting stock options. Spread the wealth around.

For 3+ decades wealth has trickled up, we can no longer sustain an economy in which the average CEO make 475 times what the average worker makes.

Yes, so punish good Tax-Paying Citizens. Nice job, you Goose Stepping Big Government dimwits. It's not the Taxpayers' fault we're in this horrific mess. It's your beloved Big Brother's fault. He spent us into this awful debt nightmare. So stop your Boot-Licking and get a grip for God's sake.

 

[EdwardBaiamonte]

For 3+ decades wealth has trickled up, we can no longer sustain an economy in which the average CEO make 475 times what the average worker makes.

too stupid!! if wealth has trickled up how can everyone now afford a plazma TV, smart phone , SUV, jet travel, and eating out!!

also, if you don't like Gates and Jobs making so much don't buy their products that improve your life so much!! You want to buy and use their stuff and then steal the money back like a common thief!!

Or get off your butt and become a CEO yourself, and then give the money away!!

 

[paulitician]

Punishing and stealing more from good decent Taxpayers isn't the answer. And someday, even the loyal Goose Steppers will wake up and realize that. Because Big Brother's IRS Gestapo will be coming for them too. They will not be spared.

 

[Freemason9]

Consumer spending would increase if wages increased. So let's all support higher wages in the interest of an improved economy; there is no shortage of wealth at all, but it's all going into the same few hands these days. It needs to be distributed in a way that rewards workers more than trust fund babies.

 

[Freemason9]

I just call em like i see em. You are a Big Brother-Worshipping dimwit.

Translation: I cannot support my post, so will just resort to my usual babble about Big Brother.

You are pathetic.

Nah, but you Big Brother-Worshippers are. You should be ashamed of yourselves for defending him.

What state do you live in, if I might ask? Because most Red states are entirely dependent upon the teat of the Federal Government. Is it theft when Red state occupants accept the charity of those Blue states that support them?

 

[paulitician]

Translation: I cannot support my post, so will just resort to my usual babble about Big Brother.

You are pathetic.

Nah, but you Big Brother-Worshippers are. You should be ashamed of yourselves for defending him.

What state do you live in, if I might ask? Because most Red states are entirely dependent upon the teat of the Federal Government. Is it theft when Red state occupants accept the charity of those Blue states that support them?

Stop blaming good decent Tax-Paying Citizens. It's not their fault we're in this awful mess. It's your beloved corrupt Politician assholes' fault. They spent the Tax Dollars. Yet now they demand more hard-earned Tax Dollars? Well, to hell with em. Let them get their house in order first. Then maybe we'll talk.

 

[Freemason9]

Nah, but you Big Brother-Worshippers are. You should be ashamed of yourselves for defending him.

What state do you live in, if I might ask? Because most Red states are entirely dependent upon the teat of the Federal Government. Is it theft when Red state occupants accept the charity of those Blue states that support them?

Stop blaming good decent Tax-Paying Citizens. It's not their fault we're in this awful mess. It's your beloved corrupt Politician assholes' fault. They spent the Tax Dollars. Yet now they demand more hard-earned Tax Dollars? Well, to hell with em. Let them get their house in order first. Then maybe we'll talk.

You didn't answer the question. What state do you live in? Are you from a Red state? Are you a "taker?"

 

[paulitician]

What state do you live in, if I might ask? Because most Red states are entirely dependent upon the teat of the Federal Government. Is it theft when Red state occupants accept the charity of those Blue states that support them?

Stop blaming good decent Tax-Paying Citizens. It's not their fault we're in this awful mess. It's your beloved corrupt Politician assholes' fault. They spent the Tax Dollars. Yet now they demand more hard-earned Tax Dollars? Well, to hell with em. Let them get their house in order first. Then maybe we'll talk.

You didn't answer the question. What state do you live in? Are you from a Red state? Are you a "taker?"

Your question is irrelevant. You want to punish good decent Tax-Paying Citizens for the sins of your beloved Big Brother. He has created this awful mess. Yet you want to help him steal more from good hard-working Citizens. But that's ok, because one day even you loyal Goose Steppers will wake up to reality. Because Big Brother's IRS Gestapo will be coming for you guys too. You will not be spared his wrath. Bet on that.

 

[SteadyMercury]

You didn't answer the question. What state do you live in? Are you from a Red state? Are you a "taker?"

Paulitician never answers questions, his only argument is calling people gestapo or big brother who try to engage him in debate. Puddle deep.

 

[Freemason9]

Stop blaming good decent Tax-Paying Citizens. It's not their fault we're in this awful mess. It's your beloved corrupt Politician assholes' fault. They spent the Tax Dollars. Yet now they demand more hard-earned Tax Dollars? Well, to hell with em. Let them get their house in order first. Then maybe we'll talk.

You didn't answer the question. What state do you live in? Are you from a Red state? Are you a "taker?"

Your question is irrelevant. You want to punish good decent Tax-Paying Citizens for the sins of your beloved Big Brother. He has created this awful mess. Yet you want to help him steal more from good hard-working Citizens. But that's ok, because one day even you loyal Goose Steppers will wake up to reality. Because Big Brother's IRS Gestapo will be coming for you guys too. You will not be spared his wrath. Bet on that.

So, you think that taxation--permitted in the Constitution--is theft.

Also, you are obviously a Red state "taker," so I have nothing to say to you. You are living off from my taxes.

 

[paulitician]

You didn't answer the question. What state do you live in? Are you from a Red state? Are you a "taker?"

Your question is irrelevant. You want to punish good decent Tax-Paying Citizens for the sins of your beloved Big Brother. He has created this awful mess. Yet you want to help him steal more from good hard-working Citizens. But that's ok, because one day even you loyal Goose Steppers will wake up to reality. Because Big Brother's IRS Gestapo will be coming for you guys too. You will not be spared his wrath. Bet on that.

So, you think that taxation--permitted in the Constitution--is theft.

Also, you are obviously a Red state "taker," so I have nothing to say to you. You are living off from my taxes.

You're fighting for the wrong side. This is your beloved Big Brother's awful mess. The Taxpayers did their duty as good Citizens. They paid their Taxes and Big Brother pissed it all away. And now he's demanding more? Well, that's Bullshit. You really should reconsider whose side you should be on.

 

[EdwardBaiamonte]

Your question is irrelevant. You want to punish good decent Tax-Paying Citizens for the sins of your beloved Big Brother. He has created this awful mess. Yet you want to help him steal more from good hard-working Citizens. But that's ok, because one day even you loyal Goose Steppers will wake up to reality. Because Big Brother's IRS Gestapo will be coming for you guys too. You will not be spared his wrath. Bet on that.

So, you think that taxation--permitted in the Constitution--is theft.

Also, you are obviously a Red state "taker," so I have nothing to say to you. You are living off from my taxes.

You're fighting for the wrong side. This is your beloved Big Brother's awful mess. The Taxpayers did their duty as good Citizens. They paid their Taxes and Big Brother pissed it all away. And now he's demanding more? Well, that's Bullshit. You really should reconsider whose side you should be on.

Yes, government got huge beyond all bounds under Bush and Obama and our problems are worse than ever. If that didn't work why on earth would we want even more of the same as a cure??

 

[paulitician]

So, you think that taxation--permitted in the Constitution--is theft.

Also, you are obviously a Red state "taker," so I have nothing to say to you. You are living off from my taxes.

You're fighting for the wrong side. This is your beloved Big Brother's awful mess. The Taxpayers did their duty as good Citizens. They paid their Taxes and Big Brother pissed it all away. And now he's demanding more? Well, that's Bullshit. You really should reconsider whose side you should be on.

Yes, government got huge beyond all bounds under Bush and Obama and our problems are worse than ever. If that didn't work why on earth would we want even more of the same as a cure??

Yes, sending more of your hard-earned Tax Dollars to be flushed down Big Brother's toilet is not the answer. Why should good decent Citizens be punished for Government crimes? It's time they got their house in order. No more Tax increase demands until that happens. Period, end of story.

 

[EdwardBaiamonte]

You're fighting for the wrong side. This is your beloved Big Brother's awful mess. The Taxpayers did their duty as good Citizens. They paid their Taxes and Big Brother pissed it all away. And now he's demanding more? Well, that's Bullshit. You really should reconsider whose side you should be on.

Yes, government got huge beyond all bounds under Bush and Obama and our problems are worse than ever. If that didn't work why on earth would we want even more of the same as a cure??

Yes, sending more of your hard-earned Tax Dollars to be flushed down Big Brother's toilet is not the answer. Why should good decent Citizens be punished for Government crimes? It's time they got their house in order. No more Tax increase demands until that happens. Period, end of story.

yes a sane process like a Balanced Budget Amendment would be an outrage to Democrats. Individuals, familes, states, and businesses have to balance their budget but not libturds.

And its worked out so well- right???