Americans' Income Takes Sharp Drop In January - KATV - Breaking News, Weather and Razorback Sports

Americans' Income Takes Sharp Drop In January

Posted: Updated:

2013 has been making a lot of people in this country feel poor. Americans saw their income drop so dramatically in January that it marked the deepest one-month decline in 20 years.

Personal income went down by more than 500 billion dollars -- a three-point-six percent decrease from December. This happened because of a combination of one-time events. Companies paid out dividends early -- at the end of last year to help high income shareholders avoid paying higher taxes. That also boosted their December income.

Because the payroll tax cut expired at the end of 2012, most workers are paying two percentage points more in taxes now. The Commerce Department has a formula for figuring out personal income. It says if you exclude those special factors, then disposable income actually increased a little in January.

(source: CNN)

Most Popular

Stories
Videos
loading...
  • Most Popular StoriesMost Popular StoriesMore>>

  • Mount Vernon community remembers hit-and-run victim’s life

    Mount Vernon community remembers hit-and-run victim’s life

    Wednesday, August 27 2014 5:12 PM EDT2014-08-27 21:12:49 GMT
    Heather Danielle Baker's infectious smile was on the minds of all who attended her memorial in Mount Vernon on Aug. 25. Family and friends filled the Mount Vernon-Enola High School gym, most wearing purple in celebration of Baker's life.More >>
    Heather Danielle Baker's infectious smile was on the minds of all who attended her memorial in Mount Vernon on Aug. 25. Family and friends filled the Mount Vernon-Enola High School gym, most wearing purple in celebration of Baker's life.More >>
  • Jermain Taylor pleads not guilty, given $25K bond

    Jermain Taylor pleads not guilty, given $25K bond

    Wednesday, August 27 2014 5:11 PM EDT2014-08-27 21:11:53 GMT
    Professional Boxer Jermain Taylor has pleaded not guilty on charges for first degree battery and aggravated assault. Wednesday morning, he was given a $25,000 bond by Pulaski County District Court Judge Wayne Gruber.More >>
    Professional Boxer Jermain Taylor has pleaded not guilty on charges for first degree battery and aggravated assault. Wednesday morning, he was given a $25,000 bond by Pulaski County District Court Judge Wayne Gruber.More >>
  • Woman cleared of wrongdoing, officer fired after withholding evidence

    Woman cleared of wrongdoing, officer fired after withholding evidence

    Woman cleared of wrongdoing, officer fired after withholding evidence

    Tuesday, August 26 2014 10:22 PM EDT2014-08-27 02:22:22 GMT
    Officer Mark WinchesterOfficer Mark Winchester
    FAULKNER COUNTY (KATV)--A Mayflower Police officer is fired, after a prosecutor said he withheld evidence regarding an investigation. Officer Mark Winchester was terminated this morning. More >>
    FAULKNER COUNTY (KATV)--A Mayflower Police officer is fired, after a prosecutor said he withheld evidence regarding an investigation. Officer Mark Winchester was terminated this morning. More >>