If Walmart Shoppers Are Broke, Then We're All In Trouble - Business Insider

If Walmart Shoppers Are Broke, Then We're All In Trouble - Business Insider

Here is another stupid Business Insider article that says the problems with Walmart revolve around the 6.2 percent payroll tax, up from 4.2 percent,  that works out to 60 bucks a month for a guy making 40k per year. I responded with my usual frustration to this thoughtless reporting:

 Here is the problem the execs at Walmart are more concerned with oil prices and food than they are about the 6.2 percent payroll tax rise. Why is BI a broken record on this.

This article says: When the payroll-tax break expired at the end of last year, Americans started paying 2 percentage points more in Social Security taxes on their first $113,700 in wages, Dudley reported. That's $60 a month for someone making $40,000 a year.

Ashley, that is PEANUTS compared to gasoline rising EVERY DAY. What is wrong with you people?
and:

This is what the Walmart execs said and it wasn't about a payroll tax:

The company’s Chief Executive Mike Duke said in a pre-recorded call the discount giant’s “core customers remain cautious about their finances.” “You can expect us to invest even more in lower prices,” he said.

Company executives said while Wal-Mart is cautiously optimistic about the improved employment reports, gas prices that have crept up again remain a concern. On the grocery front, while inflation is moderating, it continues to be an issue for many of the company’s customers.


While it is true that emails exist that show Walmart executive concerns based upon the payroll tax, when push comes to shove, they are more worried about the price of gasoline and foodstuff. Business Insider appears to be ignoring this fact.

Comments

  1. The average working age American drives between 12,000 and 15,000 miles per year. The average mid sized US car gets 21 miles per gallon. That means they use about 675 gallons of gas a year. That breaks down to about 56 gallons per month. Now lets say the price of gas goes up from $3.75 to $4.00 a gallon.. that would be a 25 cent increase... That would cost the average American an extra $14 a month in gas... So as you can see... you would need an increase of approximately $1/gallon in the price of gas to equal the payroll tax increase of $60/month on the average American. In other words, the payroll tax is a much bigger deal for the consumer than the price of gas.

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  2. Here is the problem, gas should be $2.50 per gallon. Multiply $4.00-$2.50-$1.50x675=$1013 per year. That is huge if you add it to the excess costs of speculation on commodities such as milk and bread. You are starting to get into real money here.

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