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Americans see biggest monthly income drop in 20 years
CNN Money ^ | March 1 2013 | CNN Money

Posted on 03/01/2013 7:29:35 PM PST by NoLibZone

Americans saw their income drop so dramatically in January that it marked the deepest one-month decline in 20 years. -

Personal income decreased by $505.5 billion in January, or 3.6%, compared to December (on a seasonally adjusted and annualized basis). That's the most dramatic decline since January 1993, according to the Commerce Department.

It's something of a combination of one-time events, though.

Monthly income was unusually high in December because companies paid out early dividends to avoid upcoming tax hikes. Companies like Wal-Mart (WMT, Fortune 500), Oracle (ORCL, Fortune 500), and Costco Wholesale Corp paid special dividends to their shareholders at the end of 2012, instead of waiting until 2013.

In doing so, they helped their high-income shareholders (individuals earning at least $400,000 a year, or married couples earning $450,000) avoid paying higher taxes on their gains. In their last-minute fiscal cliff deal, lawmakers decided to raise dividend tax rates for high-income households from 15% to 20%.

The payroll tax cut's expiration also played a role in January's drop, because most workers have to pay 2 percentage points more in taxes this year. The Commerce Department's "personal income" calculation subtracts out individuals' contributions to government social insurance programs like Social Security, which are funded by the payroll tax.

Excluding those special factors, the Commerce Department estimates that after-tax income actually increased 0.3% in January.

(Excerpt) Read more at money.cnn.com ...


TOPICS: Business/Economy; Extended News; Government; News/Current Events
KEYWORDS: earnings; householdincome; incomes; obama; personalincome
And if we send more to DC all will be well.

Also- Like Bengahis or the release of the 5,000 criminals by the DHS- this is RUSH's fault!

With the exception of the killing of Bin Laden - Obama has nothing to do with anythang that happens in DC .

1 posted on 03/01/2013 7:29:46 PM PST by NoLibZone
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To: NoLibZone

And if we send more to DC all will be well.

Also- Like Benghazi or the release of the 5,000 criminals by the DHS- this is RUSH’s fault!

With the exception of the killing of Bin Laden - Obama has nothing to do with anything that happens in DC .


2 posted on 03/01/2013 7:30:28 PM PST by NoLibZone (We have the nation we deserve. I predict FR will hate GOP Candidate for 2016 , because of his shoes.)
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To: NoLibZone

And Wall Street is hitting their max. What does that tell you?


3 posted on 03/01/2013 7:33:16 PM PST by stormer
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To: NoLibZone

Never fear. The MSM will spin this as a sign of economic recovery.


4 posted on 03/01/2013 7:33:25 PM PST by rbg81
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To: NoLibZone

Lyrics of the old song “Wheel of Fortune”, “spinning, spinning, spinning” go through my head as I read on in this article.

IIRC 1993 was another Democrat President with a Democrat Congress.


5 posted on 03/01/2013 7:33:25 PM PST by rockinqsranch (Dems, Libs, Socialists, call 'em what you will, they ALL have fairies livin' in their trees.)
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To: NoLibZone
I can vouch for the income loss. January was my worse month ever. With the increases in the government revenue (TAXES) both California and Federal, I'm losing my ass. I work harder and bring home less. Maybe I should just quit working and do like millions are doing, live off the working slobs income. Get welfare, food stamps and the best part, get an Obama phone. How can I go wrong?????
6 posted on 03/01/2013 7:41:47 PM PST by Nitehawk0325 (All praise King Obama and bend over backwards for him.)
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To: NoLibZone
It's Bush's fault.. wot? Sequestration? Oh! that's right five years of blaming Bush.. we need a new excuse!

It's sequestration's fault!

(That's a very real reason for sequestration and it is starting to be talked about on talk radio.)

7 posted on 03/01/2013 7:43:18 PM PST by WilliamofCarmichael (If modern America's Man on Horseback is out there, Get on the damn horse already!)
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To: NoLibZone

If this is recovery, I sure as hell would hate to see Obama’s idea of recession!


8 posted on 03/01/2013 7:45:27 PM PST by DemforBush (When life gives you lemons, hoard them and make a killing in citrus futures!)
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To: WilliamofCarmichael

Reagan’s fault.


9 posted on 03/01/2013 7:45:52 PM PST by NoLibZone (We have the nation we deserve. I predict FR will hate GOP Candidate for 2016 , because of his shoes.)
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To: stormer

There’s a lot of money out there. I’ve said for a while now that the market is nothing but a money tank. It’s all governed by whim. You know, money is and always has been, and in fact must be by nature, subjective, but now it’s becoming hallucinatory.


10 posted on 03/01/2013 7:48:58 PM PST by dr_lew
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To: NoLibZone

Hope$ & Change$...


11 posted on 03/01/2013 7:53:44 PM PST by RedHeeler
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To: NoLibZone
Americans saw their income drop so dramatically in January that it marked the deepest one-month decline in 20 years. -

More bad news. We are in dire need of a new CEO. Obozo needs to be canned!

12 posted on 03/01/2013 7:57:24 PM PST by Alaska Wolf (I)
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To: NoLibZone

Am I misunderstanding or is CNN playing to the “only read the headline crowd”.

This is probably mostly due to the payroll tax coming back and Dec stocks paying out...

???


13 posted on 03/01/2013 8:06:46 PM PST by Winstons Julia (Hello OWS? We don't need a revolution like China's; China needs a revolution like OURS.)
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To: NoLibZone
The payroll tax cut's expiration also played a role in January's drop, because most workers have to pay 2 percentage points more in taxes this year.

How dishonest can you get. Monthly income did not change as a result of the resumption of the 2% payroll tax. Takehome pay may have been affected, but the monthly income remained the same.

14 posted on 03/01/2013 8:09:55 PM PST by Go Gordon (Barack McGreevey Obama)
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To: NoLibZone
Excluding those special factors, the Commerce Department estimates that after-tax income actually increased 0.3% in January.

Translation: No, really, we aren't peeing on you, that's just a warm summer rain!

15 posted on 03/01/2013 8:14:25 PM PST by null and void (Gun confiscation enables tyranny. Don't enable tyranny.)
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To: Go Gordon

You are exactly right. I actually went back thru all our pay stubs ( I keep them) to what our check was before the 2%
cut and then when the 2% resumed this year guess what the pay check amount is exactly the same.


16 posted on 03/01/2013 8:17:39 PM PST by funfan
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To: Go Gordon

You are exactly right. I actually went back thru all our pay stubs ( I keep them) to what our check was before the 2%
cut and then when the 2% resumed this year guess what the pay check amount is exactly the same.


17 posted on 03/01/2013 8:17:53 PM PST by funfan
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To: NoLibZone

We need huge spending cuts, but we won’t see those before a bond collapse. Recirculating debt is not any kind of real economic boost. Manufacturing, for example, would be. And that won’t happen without many regulators (including local levels) being laid off.


18 posted on 03/01/2013 8:18:45 PM PST by familyop (We Baby Boomers are croaking in an avalanche of rotten politics smelled around the planet.)
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To: dr_lew

” I’ve said for a while now that the market is nothing but a money tank.”
_____________________________________

As I have posted before, the market is little more then a group of fat cats with a pile of cash, and sophisticated computer programs, AKA the George Soros types of the world.
They laugh as they do the pump and dump.
It is no longer your father’s stock market.


19 posted on 03/01/2013 8:19:22 PM PST by AlexW
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To: NoLibZone

Bloomberg says there’s no problem - we can just keep borrowing more...


20 posted on 03/01/2013 8:30:08 PM PST by GOPJ (To be free is to own one's risk - Jonathan Levy)
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To: NoLibZone

Why worry???
This is what the sheeple voted for!!

WHAT??? The TV didn’t tell them about this part?


21 posted on 03/01/2013 9:12:00 PM PST by tcrlaf (Well, it is what the Sheeple voted for....)
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To: NoLibZone

George Washington’s fault.


22 posted on 03/02/2013 4:18:08 AM PST by LiveFreeOrDie2001 (Elections have consequences - NOW LOOK what we have to deal with...)
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To: NoLibZone
"Americans see biggest monthly income drop in 20 years"

But, spending is up.

Have consumers begun imitating their government?

23 posted on 03/02/2013 7:21:34 AM PST by blam
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To: NoLibZone

America voted for it, so what are they complaining about?


24 posted on 03/02/2013 7:46:38 AM PST by KC_Conspirator
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