tax increase to drag economy down

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WASHINGTON (AP) — An increase in Social Security taxes is leaving Americans with less take-home pay — and a more negative outlook for the U.S. economy.

The Conference Board said Tuesday that its index of consumer confidence plunged 8.1 points in January from December to 58.6. That's the lowest reading in 14 months and the third straight decline.

Congress and the White House reached a deal in January to keep income taxes from rising on most Americans. But the agreement did not extend a temporary cut in the Social Security taxes.

The tax increase will leave a household earning $50,000 a year with about $1,000 less to spend in 2013. A household with two high-paid workers will have up to $4,500 less.

http://minnesota.publicradio.org/display/web/2013/01/30/economy/consumer-confidence

 

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Restored Payroll Tax Pinches Those Who Earn the Least





Chain-store sales have weakened over the course of the month. And two surveys released last week suggested that consumer confidence was eroding, especially among lower-income Americans.



While these data points are preliminary — more detailed statistics on retail sales and other trends will not be available until later this month — at street level, the pain from the expiration of a two-percentage-point break in Social Security taxes in 2011 and 2012 is plain to see.

http://www.nytimes.com/2013/02/08/b...-those-with-the-smallest-checks.html?hp&_r=1&