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News & Politics News & Politics

U.S. CONSUMER CONFIDENCE TAKES A BEATING ON HIGHER TAXES

Posted by on Jan. 30, 2013 at 1:41 AM
  • 13 Replies

U.S. CONSUMER CONFIDENCE TAKES A BEATING ON HIGHER TAXES

U.S. Consumer Confidence Plunges on Higher Taxes

Getty Images.

U.S. consumer confidence plunged in January to its lowest level in more than a year, reflecting higher Social Security taxes that left Americans with less take-home pay.

“Consumer confidence posted another sharp decline in January, erasing all of the gains made through 2012,” said Conference Board economist Lynn Franco in a statement. “Consumers are more pessimistic about the economic outlook and, in particular, their financial situation.”

Franco said the tax increase was a key reason confidence tumbled and made Americans less optimistic about the coming year.

The Conference Board said Tuesday that its consumer confidence index dropped to 58.6 in January. That’s down from a reading of 66.7 in December and the lowest since November 2011.

“The thing that’s particularly troubling is the sizable decline in expectations,” Guy Lebas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia, told Bloomberg. “As those expectations deteriorate, it doesn’t bode particularly well for day-to-day consumer spending.”

Congress and the White House reached a deal on Jan. 1 to prevent the nation from going over the so-called “fiscal cliff.” But they allowed a temporary cut in Social Security taxes to expire. For a worker earning $50,000 a year, take-home pay will shrink this year by about $1,000.

The survey was conducted through Jan. 17, at which point most people began to realize their paychecks were lighter.

Taxes are rising at a time when wages and salaries are barely growing. The combination is expected to hurt consumer spending and slow economic growth.

Many economists predict economic growth slowed in the October-December quarter to an annual rate of around 1 percent. That would be much weaker that the 3.1 percent rate in the July-September quarter. Most economists don’t expect growth to pick up much in the first quarter of 2013.

Follow Becket Adams (@BecketAdams) on Twitter

The Associated Press contributed to this story. Featured image courtesy Getty Images.

by on Jan. 30, 2013 at 1:41 AM
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Replies (1-10):
143myboys9496
by Gold Member on Jan. 30, 2013 at 5:23 AM
3 moms liked this

 OK, so..this is how I understand it:

We citizens, are expected to live within our means. Meaning, we're "discouraged" thru laws and regulations from spending more than we can payback...right? (I know it's simplified..but humor me...)

Then why is it that our esteemed government has the expectation that it doesn't have to live within IT'S means?

They raise our taxes, we have less to spend, causing the economy to swirl in the toilet....and it either becomes big news or they wonder why?

Most of us "trim the fat" when money is tight, we eat out less, cut HBO, maybe cut our cell phone bill, nag the kids to turn off the freaking lights (lol),

Then why can't our gov't do the same?

Why don't we start by STOPPING congressional LIFETIME SALARIES AND COMMITTEE PAYMENTS...and STOP their super-delux health insurance THAT WE TAXPAYERS PAY FOR....AAANNNDDD put representatives, and senators, (even the prez), in the same social security pool as the rest of us commoners?

THEN let's see where we're at...I'm guessin' we'd make up a big fat, fattie part of the gap...

 

143myboys9496
by Gold Member on Jan. 30, 2013 at 5:31 AM
2 moms liked this

 OH and since Barry promised to cut wasteful spending..let's take a look at ridiculous studies...and frivilous past spending...

#1 The U.S. government is spending $750,000 on a new soccer field for detainees held at Guantanamo Bay.

#2 The Obama administration plans to spend between 16 and 20 million dollars helping students from Indonesia get master’s degrees.

#3 If you can believe it, the U.S. government has spent $175,587 “to determine if cocaine makes Japanese quail engage in sexually risky behavior”.

#4 The U.S. government spent $200,000 on “a tattoo removal program” in Mission Hills, California.

#5 The federal government has shelled out $3 million to researchers at the University of California at Irvine to fund their research on video games such as World of Warcraft.  Wouldn’t we all love to have a “research job” like that?

#6 The Department of Health and Human Services plans to spend $500 million on a program that will, among other things, seek to solve the problem of 5-year-old children that “can’t sit still” in a kindergarten classroom.

#7 Fannie Mae is about to ask the federal government for another $4.6 billion bailout, and it will almost certainly get it.

#8 The federal government once spent 30 million dollars on a program that was designed to help Pakistani farmers produce more mangos.

#9 The U.S. Department of Agriculture once gave researchers at the University of New Hampshire $700,000 to study methane gas emissions from dairy cows.

#10 According to USA Today, 13 different government agencies “fund 209 different science, technology, engineering and math (STEM) education programs — and 173 of those programs overlap with at least one other program.”

#11 A total of $615,000 was given to the University of California at Santa Cruz to digitize photos, T-shirts and concert tickets belonging to the Grateful Dead.

#12 China lends us more money than any other foreign nation, but that didn’t stop our government from spending 17.8 million dollars on social and environmental programs for China.

#13 The U.S. government once spent 2.6 million dollars to train Chinese prostitutes to drink responsibly.

#14 One professor at Stanford University was given $239,100 to study how Americans use the Internet to find love.

 

http://endoftheamericandream.com/archives/30-stupid-things-the-governemnt-is-spending-money-on

143myboys9496
by Gold Member on Jan. 30, 2013 at 5:33 AM
2 moms liked this

 

#15 The U.S. Postal Service spent $13,500 on a single dinner at Ruth’s Chris Steakhouse.

#16 The National Science Foundation once spent $216,000 to study whether or not politicians “gain or lose support by taking ambiguous positions”.

#17 A total of $1.8 million was spent on a “museum of neon signs” in Las Vegas, Nevada.

#18 The federal government spends 25 billion dollars a year maintaining federal buildings that are either unused or totally vacant.

#19 U.S. farmers are given a total of $2 billion each year for not farming their land.

#20 The U.S. government handed one Tennessee library $5,000 for the purpose of hosting a series of video game parties.

#21 A few years ago the government spent $123,050 on a Mother’s Day Shrine in Grafton, West Virginia.  It turns out that Grafton only has a population of a little more than 5,000 people.

#22 One professor at Dartmouth University was given $137,530 to create a “recession-themed” video game entitled “Layoff”.

#23 According to the Heritage Foundation, the U.S. military spent “$998,798 shipping two 19-cent washers from South Carolina to Texas and $293,451 sending an 89-cent washer from South Carolina to Florida”.

#24 The U.S. Department of Agriculture once shelled out $30,000 to a group of farmers to develop a tourist-friendly database of farms that host guests for overnight “haycations”.

#25 The National Institutes of Health paid researchers $400,000 to find out why gay men in Argentina engage in risky sexual behavior when they are drunk.

#26 The National Institutes of Health also once spent $442,340 to study the behavior of male prostitutes in Vietnam.

#27 The National Institutes of Health loves to spend our tax money on really bizarre things.  The NIH once spent $800,000 in “stimulus funds” to study the impact of a “genital-washing program” on men in South Africa.

#28 According to the Washington Post, 1,271 different government organizations work on government programs related to counterterrorism and homeland security.

#29 The U.S. government spent $100,000 on a “Celebrity Chef Fruit Promotion Road Show in Indonesia”.

#30 The feds once gave Alaska Airlines $500,000 “to paint a Chinook salmon” on the side of a Boeing 737.

143myboys9496
by Gold Member on Jan. 30, 2013 at 5:56 AM
1 mom liked this

 Ok, so since things are quiet, I had time to add...I couldn't add #10 and #28 no figures were provided..But this is the total I got...anyone who cares to can check my math...

$32,677,939,356 

Think that make a dent??

And that's WITHOUT  the congressional waste cutting I mentioned in my 1st reply.

(I desperately need sleep...)

Carpy
by Platinum Member on Jan. 30, 2013 at 6:04 AM
1 mom liked this

I would hope, nobody is surprised by this.

pvtjokerus
by Gold Member on Jan. 30, 2013 at 6:29 AM
1 mom liked this

 You are making too much sense.  However, it is a racket game and those that are milking the system are living high off the backs of others.  Meanwhile, the middle class will now become the new lower class.  The very ones that are making these laws such as Pelosi, Reid and Obama are sitting pretty and milking a system designed for them to manipulate.  Meanwhile, backyard deals are being made with the Labor Unions, SEIU and other unions in order to make the board on these Unions rich and those in office rich.  This is just an example and one is not to be mislead that this is the only racket going on in the U.S. government.  Heck, look at Gore's and Clinton's back account......


Quoting 143myboys9496:

 OK, so..this is how I understand it:

We citizens, are expected to live within our means. Meaning, we're "discouraged" thru laws and regulations from spending more than we can payback...right? (I know it's simplified..but humor me...)

Then why is it that our esteemed government has the expectation that it doesn't have to live within IT'S means?

They raise our taxes, we have less to spend, causing the economy to swirl in the toilet....and it either becomes big news or they wonder why?

Most of us "trim the fat" when money is tight, we eat out less, cut HBO, maybe cut our cell phone bill, nag the kids to turn off the freaking lights (lol),

Then why can't our gov't do the same?

Why don't we start by STOPPING congressional LIFETIME SALARIES AND COMMITTEE PAYMENTS...and STOP their super-delux health insurance THAT WE TAXPAYERS PAY FOR....AAANNNDDD put representatives, and senators, (even the prez), in the same social security pool as the rest of us commoners?

THEN let's see where we're at...I'm guessin' we'd make up a big fat, fattie part of the gap...

 


 

pvtjokerus
by Gold Member on Jan. 30, 2013 at 6:31 AM
2 moms liked this

 #7 really chaps my @.  Bush was belittled by the Democratic Congress when he warned them about Freddie and Fannie.  And yet the demos still lie about this scam........


Quoting 143myboys9496:

 OH and since Barry promised to cut wasteful spending..let's take a look at ridiculous studies...and frivilous past spending...

#1 The U.S. government is spending $750,000 on a new soccer field for detainees held at Guantanamo Bay.

#2 The Obama administration plans to spend between 16 and 20 million dollars helping students from Indonesia get master’s degrees.

#3 If you can believe it, the U.S. government has spent $175,587 “to determine if cocaine makes Japanese quail engage in sexually risky behavior”.

#4 The U.S. government spent $200,000 on “a tattoo removal program” in Mission Hills, California.

#5 The federal government has shelled out $3 million to researchers at the University of California at Irvine to fund their research on video games such as World of Warcraft.  Wouldn’t we all love to have a “research job” like that?

#6 The Department of Health and Human Services plans to spend $500 million on a program that will, among other things, seek to solve the problem of 5-year-old children that “can’t sit still” in a kindergarten classroom.

#7 Fannie Mae is about to ask the federal government for another $4.6 billion bailout, and it will almost certainly get it.

#8 The federal government once spent 30 million dollars on a program that was designed to help Pakistani farmers produce more mangos.

#9 The U.S. Department of Agriculture once gave researchers at the University of New Hampshire $700,000 to study methane gas emissions from dairy cows.

#10 According to USA Today, 13 different government agencies “fund 209 different science, technology, engineering and math (STEM) education programs — and 173 of those programs overlap with at least one other program.”

#11 A total of $615,000 was given to the University of California at Santa Cruz to digitize photos, T-shirts and concert tickets belonging to the Grateful Dead.

#12 China lends us more money than any other foreign nation, but that didn’t stop our government from spending 17.8 million dollars on social and environmental programs for China.

#13 The U.S. government once spent 2.6 million dollars to train Chinese prostitutes to drink responsibly.

#14 One professor at Stanford University was given $239,100 to study how Americans use the Internet to find love.

 

http://endoftheamericandream.com/archives/30-stupid-things-the-governemnt-is-spending-money-on


 

Imacakebaker
by on Jan. 30, 2013 at 1:31 PM
1 mom liked this

What happened to Obama was going to look out for the middle class?

I would have rather kept the tax cuts, and cut down how many weeks you can milk unemployment.

JustCJ
by on Jan. 30, 2013 at 4:31 PM

Shocker

jesusismyfriend
by Member on Jan. 30, 2013 at 6:24 PM

Higher taxes, higher gas, higher commodity prices. Everything is higher and the middle class and lower class are getting squeezed. Sad thing is the middle class cannot receive help.

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