From Global Economic Trend Analysis:
For some reason, many people are surprised to see a drop in their first paycheck of the year. Yet, everyone should have known the payroll tax deduction was supposed to end January 1, 2013.
Perhaps people put faith in the notion that when it comes to politics, "temporary" typically means permanent. Of course, some people were likely oblivious to the whole thing, simply not paying attention to the original proposal and when it was set to expire.
To be fair, a temporary two-year Congressional measure that lasts precisely two years, might easily be considered "unexpected."
Consumers Cut Back on TP, Pampers, Huggies, Purina
Regardless of what people thought or expected, the "Payroll Tax Takes a New Bite":
A temporary cut in Social Security withholdings gave Americans hundreds of extra dollars to spend over the past two years. But Congress allowed that break to expire during the wrangling over the fiscal cliff, meaning that Social Security taxes have reverted to 6.2% of salary from the temporary 4.2%.
Kari Barker, an accountant in Salt Lake City, recently received her first 2013 paycheck and realized that she and her husband will take home $250 less every month. "I used to be a diapers snob and would only buy Pampers or Huggies," Ms. Barker said. "Now I buy Target's house brand, because it's two-thirds the cost."
Procter & Gamble Co. (PG), which owns Charmin, Pampers, and other brands, declined to comment, citing...
Read full article...
More on the economy:
The housing market is about to do something we haven't seen in six years
Surprising post shows Congress could balance the budget "easily"...
The worst effect of Obama's re-election may have nothing to do with taxes, healthcare, or handouts