One last try but I’m sure you’ll just say this is all made up too...
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.
- See more at: http://money.cnn.com/2013/03/01/news/economy/income-spending-saving/#sthash.pz0YaQxu.dpuf
My income got very distorted at the end of 2012. A chunk of income that I would normally not take until January or February I took in December to avoid 2013 taxes. But it shoved up my December a lot and I’m going to get creamed for 2012 taxes. Just not as much as I would have taking the money in January of this year.
I have no doubt that ObamaCare et al is causing plenty of economic statistic distortions. Bottom line is the economy sucks and will continue to suck while the government will continue to take more of our assets.