Survey details impact of payroll tax changes on retail
Washington, D.C. -- Nearly three-quarters (73.3%) of consumers say their spending plans are taking a hit due to the recent payroll tax changes, according to NRF’s 2013 Tax Returns Survey conducted by BIGinsight.
When asked how the new federal tax laws have affected spending, saving or budgeting of their households, nearly six in 10 (58.2%) of those polled say their plans have been either somewhat or greatly impacted. Specifically, nearly half (45.7%) say they will spend less overall, and 35.6% will watch for sales more often.
Additionally, one-third (33.5%) will reduce how much they dine out and 24.5% will spend less on “little luxuries,” such as trips to coffee shops, manicures and high-end cosmetic items.
Of those greatly impacted, nearly half (49.2%) will delay major purchases, such as a car, TV or furniture, and 58.2% will reduce the amount they dine away from home; another 43.4% say they will contribute less to savings, 46.4% will comparison shop more often, and 54.4% will spend less on clothing.
The survey found that half (50.0%) of those who make less than $50,000 a year say they will spend less overall. Additionally, 23.2% will spend less on groceries, compared to 16.7% of consumers who make more than $50,000 a year, and 27.6% will shop at discount stores more often, compared to 19.7% of adults making more than $50,000.