BEYOND THE NUMBERS
- A New York Federal Reserve survey found that people were generally aware of the payroll tax increase and planned to cut spending by 72 percent of their hike.
- Boston Federal Reserve researchers found that low-income people expected to cut their consumption by 90 percent of the tax increase.
- Goldman’s in-house survey found that most people have noticed the hit to their paychecks and a large majority of those are curbing spending, particularly those earning less than $90,000 per year. Goldman has also found that stores “posting the most disappointing sales” this year are those that cater to middle-income customers.
[T]he premature turn towards budget austerity since 2010 has been a drag on economic growth and job creation. Extending EUC would help offset that drag as well as reduce hardship among jobless workers and their families. In contrast, letting EUC expire would increase hardship and cost the economy jobs.