Low-income consumers hit hardest by tax increases

[Janice]

Why is Wal-Mart worried? Payroll tax could cut consumer spending. (+video)

Recent reports forecast lower spending for this year, anticipating that the restored payroll tax will impact consumers' wallets, especially low-income earners. Wal-Mart is adjusting its strategy.

Retailers are preparing for a triple whammy as the restoration of the payroll tax, surging gas prices, and stagnant employment and wages take a bite out of consumers’ disposable income, leaving them with less cash to spend on clothing, groceries, and eating out.

As a result, more than three years after the recession officially ended, American consumers might be preparing to downshift again >>> with low-income consumers hit the hardest.

CSMonitor

The recession ended? 3 Years ago?? What universe do these clowns live in?

[Retread]

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The recession ended? 3 Years ago?? What universe do these clowns live in?

The one where a dim controlled committee determines dates rather than actually going by the definition of "recession".

NBER

[Starbuck]

Is it just me? I'm tired of hearing all about how hard it is for the poor. I was poor once and things were hard. So I worked harder. Educated myself. Moved where the job needed me to go. Stayed late. Did what I could to promote myself. Now I am not poor. And I remember how I became wealthy.

I worked.

Try it, poor folks.

[RobJohnson]

Is it just me? I'm tired of hearing all about how hard it is for the poor. I was poor once and things were hard. So I worked harder. Educated myself. Moved where the job needed me to go. Stayed late. Did what I could to promote myself. Now I am not poor. And I remember how I became wealthy.

I worked.

Try it, poor folks.

Less consumer spending results in higher prices for everyone. Employers are having to make drastic decisions to try and make the bottom line work. Locations will start to close, stock prices will drop and even more people will find it hard to make ends meet every month.

I'm happy you are in a position you do not have to worry about this.

I do.