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 $450,000) avoid paying higher taxes on their gains. In their last-minute fiscal cliff deal, lawmakers decided to raise dividend tax rates for high-income households from 15% to 20%.
The payroll tax cut's expiration also played a role in January's drop, because most workers have to pay 2 percentage points more in taxes this year. The Commerce Department's "personal income" calculation subtracts out individuals' contributions to government social insurance programs like Social Security, which are funded by the payroll tax.
Excluding those special factors, the Commerce Department estimates that after-tax income actually increased 0.3% in January.
(Excerpt) Read more at money.cnn.com ...
Also- Like Bengahis or the release of the 5,000 criminals by the DHS- this is RUSH's fault!
With the exception of the killing of Bin Laden - Obama has nothing to do with anythang that happens in DC .
And if we send more to DC all will be well.
Also- Like Benghazi or the release of the 5,000 criminals by the DHS- this is RUSH’s fault!
With the exception of the killing of Bin Laden - Obama has nothing to do with anything that happens in DC .
And Wall Street is hitting their max. What does that tell you?
Never fear. The MSM will spin this as a sign of economic recovery.
Lyrics of the old song “Wheel of Fortune”, “spinning, spinning, spinning” go through my head as I read on in this article.
IIRC 1993 was another Democrat President with a Democrat Congress.
It's sequestration's fault!
(That's a very real reason for sequestration and it is starting to be talked about on talk radio.)
If this is recovery, I sure as hell would hate to see Obama’s idea of recession!
Reagan’s fault.
There’s a lot of money out there. I’ve said for a while now that the market is nothing but a money tank. It’s all governed by whim. You know, money is and always has been, and in fact must be by nature, subjective, but now it’s becoming hallucinatory.
Hope$ & Change$...
More bad news. We are in dire need of a new CEO. Obozo needs to be canned!
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...
???
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.
Translation: No, really, we aren't peeing on you, that's just a warm summer rain!
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.
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.
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.
” 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.
Bloomberg says there’s no problem - we can just keep borrowing more...
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