With taxes and gas prices climbing higher, the wallets on Main Street have been under heavy attack this year. The blow to discretionary income already has consumers across the nation making adjustments to spending habits.
According to the National Retail Federation’s 2013 Tax Returns Survey conducted by BIGinsight, nearly three-quarters of those polled say their spending plans are taking a hit. In regards to the higher payroll taxes, almost six in 10 people say their plans have been either somewhat or greatly impacted. Forty-five percent claim they will spend less overall, and 35.6 percent will keep a look-out for sales more often. Furthermore, 33.5 percent will reduce how much they dine out, while 24.5 percent will cut spending on “little luxuries” such as coffee-shop trips.
“We cannot grow the nation’s economy until consumers consume. A smaller paycheck due to the fiscal cliff deal early last month, higher gas prices, low consumer confidence and ongoing uncertainty about our nation’s fiscal health is negatively impacting consumers and businesses across the country,” said NRF President and CEO Matthew Shay, in a press statement. “Every day we hear about building the middle class. We can only do that if we tear down barriers that prevent consumers from investing their hard-earned money back into our nation’s economy. It’s really that simple.”
More than small expenses are on the chopping block…