Los Angeles Business Journal

Retailers Fear Payroll Tax

Monday, January 14, 2013

A temporary cut in Social Security withholdings gave Americans hundreds of extra dollars to spend over the past two years, but Congress allowed that break to expire during the wrangling over the fiscal cliff. The hit is likely to cement a frugal attitude that led consumers to cut back on eating out and shift to less-expensive store brands, the Wall Street Journal and Bloomberg BusinessWeek report.