At the beginning of this year, many Americans opened their paychecks to find that their take-home pay was suddenly less than it had been the previous month. The payroll tax cut had expired, resulting in the average American worker owing an additional $700 in payroll taxes this year compared to last.
High earners will see $7254 in Social Security tax withheld in 2014, a stiff increase from $4624 in 2012 when a temporary payroll tax cut was in effect.
Wal-Mart Stores cut its annual profit forecast yesterday after higher US payroll taxes reduced customer traffic at the world’s largest retailer in the second quarter. ||| Renee Dudley New York Wal-Mart Stores cut its annual profit forecast...Show More Summary
The Congressional Budget Office last year warned that the increase in payroll taxes coupled with the $85 billion Sequester would cut the growth rate for 2013 in half. That's happening. Instead of furloughing public employees, the government should be adding new public jobs. Show More Summary
The US economy continues to slide into double dip recession under the savage austerity of income tax increases, payroll tax increases, and deep spending cuts. Not. But like the pain in a phantom limb that his been removed by surgery, the press has a hard time refraining from blaming the austerity for a slowdown that [...]
Transvaginal probes and giving regressive tax cuts after slashing K-12 education expenditures probably isn’t going to draw high-technology/knowledge based workers to the state Figure 1: Wisconsin private nonfarm payroll employment, seasonally adjusted (blue), Walker’s implied path for private employment (red). Show More Summary
Government spending cuts and higher taxes are weighing on the economy, experts say. According to the latest ADP National Employment Report, just 135,000 jobs were added to private payrolls.
In 2010, Congress passed the Tax Hike Prevention Act, which among other things reduced the payroll tax from 6.2% to 4.2% starting in 2011. For two years, workers saw higher take-home income than they would have had the law never existed, and consumers responded favorably by using the extra money throughout the two years to [...]Show More Summary
Basit Zafar, Max Livingston, and Wilbert van der Klaauw examine the impact of the payroll tax cut in 2011 and 2012, and its subsequent reversal: My Two (Per)cents: How Are American Workers Dealing with the Payroll Tax Hike?, by Basi...
(CNNMoney) - Most Americans plan to cut spending to make up for income lost from the payroll tax hike, according to a New York Federal Reserve study released Wednesday. The payroll tax cut, which was in effect in 2011 and 2012, reduced the amount withheld from workers' paychecks to 4.2%, down from 6.2%. That put […]
(WASHINGTON) — A survey shows U.S. companies added the fewest jobs in seven months, indicating that government spending cuts and higher taxes may be weighing on the economy. Payroll processor ADP says private employers added just 119,000 jobs last month. Show More Summary
US consumer spending grew slightly in March. ||| Washington - US consumer spending grew slightly in March, the Commerce Department reported Monday, in a fresh sign that higher payroll taxes and government spending cuts could be slowing economic growth. Show More Summary
The Commerce Department reported that U.S. retail sales contracted in March, their sharpest decline in nine months, as payroll tax hikes and government spending cuts may finally be taking a toll on consumer spending.
2013 is a tough year if you owe payroll tax, as most of us do. Not only did the 2010 payroll tax cut die at the end of 2012, but high-income workers now owe an extra 0.9 percent, thanks to the Affordable Care Act. Economists worry about...Show More Summary
By Harlan Levy: Economist Nicholas Perna is the economic adviser to Webster Financial Corp. and managing director of consulting firm Perna Associates. He is also a visiting lecturer at Yale University. Harlan Levy: Did March's poor job numbers - only 88,000 new jobs - change your outlook on the U.S. Show More Summary
And bring back the payroll tax cut.
2013 is a tough year if you owe payroll tax, as most of us do. Not only did the 2010 payroll tax cut die at the end of 2012, but high-income workers now owe an extra 0.9 percent, thanks to the Affordable Care Act. Economists worry about what the combined new taxes will mean for [...]
This is exactly right, from Justin Green. Cut the payroll tax — Justin Green (@JGreenDC) April 5, 2013 The upshot of today's bad jobs report, assuming the numbers aren't revised massively, is that retail sector is weak, which implies a negative effect from the increase in the payroll tax, which happened at the start of the year. Show More Summary
From Yahoo.com: Economists predicted catastrophe: As workers started taking home paychecks in January that were 2 percent lighter – thanks to the expiration of the payroll tax cut – they thought consumer confidence and spending would tank. So far, it hasn’t. Retail sales rose more than analysts expected last month, and consumer confidence rebounded. It [...]
Economists predicted catastrophe: As workers started taking home paychecks in January that were 2 percent lighter – thanks to the expiration of the payroll tax cut – they thought consumer confidence and spending would tank. So far, it hasn’t. Retail sales rose m …