As we said earlier today lackluster sales at Wal-Mart (NYSE:WMT) look to some like evidence that the US's payroll tax increase at the start of this year is as predicted pinching less-affluent Americans. And all else equal raising taxes in a weak economy is probably not the best move. Show More Summary
NEW YORK/CHICAGO (Reuters) - Cooler than usual weather and belt-tightening by shoppers still struggling with higher payroll taxes and stubborn unemployment dampened sales last quarter at chains from Macy's Inc to Wal-Mart Stores Inc...
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
Walmart's Q1 financial results are out. Earnings per share came in at $1.14 per share, which was right in line with expectations. However, sales are looking weak. Comparable store sales excluding fuel fell by 1.4%. Analysts were looking...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...
A roundup of economic news from around the Web.
(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 […]
By Trefis: Wal-Mart (WMT) will release its Q1 fiscal 2014 results on May 16. Although the retailer performed steadily throughout fiscal 2013, we expect it to report relatively slow growth during this quarter. Higher payroll taxes and delays in tax refunds will be some of the key factors governing the retailer’s results in the U.S. Show More Summary
Although the retailer performed steadily throughout fiscal 2013, we expect it to report relatively slow growth during this quarter. Higher payroll taxes and delays in tax refunds will be some of the key factors governing the retailer’s results in the U.S.
The venerable UBS floorman asks (and answers) an interesting question. With the re-institution of the payroll tax and higher level rates and with spending lowered by sequestration, will the Treasury need to offer fewer bonds? And ifShow More Summary
(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
Rick Bowmer/APJob seekers at a recent job fair in Portland, Ore. Americans' confidence in the economy rose in April despite continued high unemployment and a rise in payroll taxes. By Leah Schnurr NEW YORK -- U.S. consumer confidence...Show More Summary
By Bret Jensen: I have been underweight on the retailing sector throughout 2013 until the impacts of the payroll tax holiday expiration and other various tax hikes worked their way through the economy. However, consumption seems to be holding up judging by the 3.2% increase noted in the first-quarter GDP report hitting the market last week. 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
Spencer Platt/Getty Images By CHRISTOPHER S. RUGABER WASHINGTON -- This year got off to a sour start for U.S. workers: Their pay, already gasping to keep pace with inflation, was suddenly shrunk by a Social Security tax increase. Which raised a worrisome question: Would consumers stop spending and further slow the economy? Nope. Show More Summary
Dwight Howard can decide to become a free agent, the Lakers can amnesty a player and several reserves probably won't return. The Lakers have the largest payroll in the NBA and could look to lower taxes. That was a waste of a season. Now what?
(Reuters) - Starbucks Corp reported higher quarterly profit on Thursday, helped by strength in the United States, its top market, despite an industry-wide spending downturn in February due to a U.S. payroll tax increase that lowered take-home pay.
Is your business using an external payroll company? If so, beware of potential tax fraud. Four out of 10 businesses on average outsource the management of their payrolls to payroll service firms, according to a report by the Washington-based National Small Business Association. Show More Summary
Is the American consumer genuinely spending? While the combination of rising home prices and higher 401k values may contribute to a temporary wealth effect, higher payroll taxes may begin to exact a toll. Consider the curious case of SPDR Retail (XRT). Its year-to-date 16.2% haul is better than...
ByUlfberht Capital: Automatic Data Processing (ADP) is the largest provider of payroll outsourcing services in the world. Additionally, ADP provides services such as data progressing, benefits administration, tax filing, and human resources outsourcing. Show More Summary