Rising Costs of Food and Gas Affecting Payroll Tax Cut
More than two months after Americans got a small paycheck boost courtesy of Uncle Sam, the verdict is in: it's not working.
The goal of rolling back Social Security payroll taxes by 2 percent was to encourage consumers to spend more, thus stimulating the economy. But with the cost of living rising faster than expected and people preparing to pay income taxes, folks are actually spending less, say Chicago bankruptcy attorneys.
Oil is more than $100 a barrel, and rising in light of the Libyan crisis. Gas prices are being pushed higher. Inflation has hit major ingredients like corn, wheat and soybeans, increasing costs for nearly all food items. For the first time in 2011, consumer spending has dropped.
Instead of providing the anticipated boost, the tax cut is merely offsetting rising costs. But if you're feeling the pinch, there's another way to bring home more bacon - lowering debt.
Reducing debt - like reducing payroll taxes - can leave you with more of your paycheck. But because most Americans are tens of thousands of dollars in debt, it can have a much bigger impact. Every dollar of debt that you pay down today is a dollar you won't have pay interest on tomorrow. If your debt is currently growing, you could be stuck paying it for life. But Chapter 13 bankruptcy can offer an affordable payment plan for you to get out of debt in 3-5 years. Think of the thousands you'll save by making payments for five years instead of 50.
If you can manage to pay your balance on your own, more power to you. But if you're like most people, you could use a hand getting that debt under control. That's what DebtStoppers is here for. Our Chicago bankruptcy attorneys can examine your financial situation during our free personal debt analysis, discuss your questions and concerns, and ultimately identify a bankruptcy plan that meets your individual needs. You don't have to wait for your boss or government to give yourself a raise - by getting out of debt, you can boost your income for good.