Chain store sales point to a hit from tax hike
WASHINGTON (Reuters) – A slowdown in sales growth at many big U.S. retailers suggests a clutch of tax hikes enacted this month is already leading consumers to hold back on spending, putting a brake on economic growth.
Sales growth has cooled for three straight weeks when measured from a year earlier in the Johnson Redbook Retail Sales Index, data showed on Wednesday.
Similarly, the ICSC U.S. retail chain store sales index, which is the other major weekly barometer of retail spending, has showed weakening of growth in the last two weeks.
“We can very tentatively say that these numbers look consistent with our view that the increase in taxes at the start of 2013 led to a slowdown in consumer spending,” said Daniel Silver, an economist at JPMorgan in New York.
Washington this month raised taxes on most Americans.
That’s so weird! So, if people have less to spend, they spend less???? 
No way!!! 
Next, they’ll tell us something like when people spend less economies slow down.. naw… 
I remember Obbamma telling us that “we” had been irresponsible with our spending, savings, credit cards, mortgages, etc
Yeh, that’s right. Now, he wants us to be irresponsible some more, but I don’t think people are buying it now.
“but I don’t think people are buying it now.” Was that an unintended pun?
I do love my plays on words!
Ever heard the story about the man who offered a woman $1,000,000 to sleep with him.
I told that story to a liberal and it went right over his head.
I already calculated that my household income (my wife and I work) is middle income, and we are taking a 5% hit in disposable income from the Obama Tax increases.
That will cut my spending.
Yes, it has to. Many fail to understand that it takes directly from disposable income. A much smaller pile than total income. And disposable income is where growth comes from.
I also calculated about a 5% drop. But that is really nothing compared to all the other higher costs that Barry has dropped on me. It only hurts because I have taken pay cut after benefit cut after cost increase, ad nauseum.
I have not lost a job, home or car yet, but there is not much more that I can cut out of my budget. I can disconnect the satellite dish, and become a teetotaller, but that is it!
I am already a teetotaler. The last alcohol I had was New Years eve – a glass of champagne. Now I cut meat (literally).
Interesting. 7 cats and no beer. (shudder)
‘So, if people have less to spend, they spend less????’
Government doesn’t understand that, because they don’t do that. They spend more.
Exactly true.
Which is the argument liberals use to defend the huge deficits of Obama (and in the next breath condemn the deficits of Bush). They say “government is not like people”. It is a catch phrase they have heard, and they are right, but they do not understand the difference.
With luck, governments last for hundreds or thousands of years. People for a few 10s of years. So government can carry a debt longer than people. And that is how they are different.
It still has to be paid back.
Americans won’t put up with Obamanomics much longer. Communism is not in their blood.
A new start will happen in 2016.
You had a post not long ago about that french 75% tax?
There is some more follow-up on it:
http://www.liveleak.com/view?i=1f1_1359295300
“France’s richest man moves to Belgium and takes multi-billion pound fortune with him ‘to avoid new socialist super-tax’ ”
Wonder how much income and wealth did France lose with that exaggerated tax?
Lars, I’ve had several posts about France….. here’s a couple that mentions Arnault.
http://suyts.wordpress.com/2012/09/25/clueless-socialists-cry-when-reality-slaps-them-in-the-face/ and here… http://suyts.wordpress.com/2012/12/13/speaking-of-europe-france-crying/
Oh yes, you’re right.