unexpectedly - higher taxes ==> less spending

[grggngll]

Now all we need is 0 on TV sniveling that it is a sacrifice we (you, not them) must be willing to make so that government can come up with more things they can do for you.

According to the Wall Street Journal, companies like WalMart, Burger King, Kraft Foods, and Tyson Foods have said they are lowering earnings forecasts and "adjusting sales and marketing strategies, expecting consumers with smaller paychecks to dine out less and trade down to less expensive purchases."

Even worse, these companies believe the "changes could be long-lasting and are revamping operations" to cater to a consumer base that is spending less, which does not bode well for the sputtering economy.

Retail experts agree, telling the Journal that what happens at companies like WalMart is often a leading indicator for the rest of the retail economy.

The U.S. Commerce Department estimated sales in January "rose at their smallest rate in three months," and companies like WalMart and Burger King do not expect sales to get better anytime soon.

http://www.breitbart.com/Big-Governm...l-Tax-Increase

[Phineas Finn]

So, how often do you think that families with incomes over $250,000 shop at WalMart?

[grggngll]

Spend less, live better. What else is there to ask?

[flyboy56]

So, how often do you think that families with incomes over $250,000 shop at WalMart?

The 98% shop at Walmart. And other middle class stores such as K-Mart and Sears which makes up most of the discretionary spending which accounts for 70% of GDP. The smart people don't believe the economy is getting better and are saving for the day when the truth is revealed. This economy is a lie stimulated by QE's and government spending resulting in $1.1T deficit. But like Obama, the wealthy aren't worried. They've got theirs!

[grggngll]

Correction....

The wealthy are very worried, but they know they can weather the storm. It is will just be a matter of how much we will have left.

Flyboy... have you tried buying bullets recently?

[flyboy56]

Correction....

The wealthy are very worried, but they know they can weather the storm. It is will just be a matter of how much we will have left.

Flyboy... have you tried buying bullets recently?

The wealthy aren't worried they could be homeless and struggling. Worried about losing some of their fortune is another thing. No on the bullets because I don't own a gun.

[cprenegade]

So, how often do you think that families with incomes over $250,000 shop at WalMart?

I doubt the tax increases on income above $250,000 had much to do with it, but when the payroll tax holiday was allowed to run out, everyone was hit with a 2% reduction in their income. To the families already on a tight budget, that probably ment they cut some of their disccretionary spending to compensate. That could have affected WalMart and others.