In response to:

Incomes Drop Most in 20 Years

westriversd Wrote: Mar 01, 2013 12:16 PM
What is it about the "payroll tax cut" that commenters/writers don't seem to understand? This "cut" in the amount of money taken from one's paycheck should never have been instituted by Congress and the prez. The FICA tax should never have been used in the first place, thus affecting the Social Security "lock box". It was just an easier administrative tool to provide some tax relief. Now, everyone is upset that a "temporary" tax cut has actually been ended and was temporary. Dependency on a temporary cut to survive, created a false sense of security, thus I could buy steak instead of hamburger?
searcherseeker Wrote: Mar 01, 2013 12:28 PM
Funny how tax "cuts' are always temporary and tax increases are always permanent.
Steve18 Wrote: Mar 01, 2013 1:18 PM
Sorry, searcher..accidently flagged you. Agreed 100 per.

In January of this year incomes dropped the most they have in 20 years. Let me just allow that to sink in. With the payroll tax cuts expiring January 1st, it is no surprise that people’s incomes fell and were spending and saving differently. Consumer spending rose in January, which seems to indicate that with these tax increases, households were forced to spend more of their income and save less.

Incomes fell by 3. 6 percent in January! This then sent the savings rate down to the lowest it’s been since November of 2007. What Americans now face is trying...