Per Wall Street 24/7 TrimTabs is reporting that withholding income declined last month:
TrimTabs is generally known for releasing data about employment payrolls each month. Now the research firm has a warning that U.S. Treasury tax receipts show the U.S. economy is stalling. TrimTabs’ real-time tax data indicates that the income tax withholdings was down by 0.2% year over year in real terms over the four weeks ended Thursday, February 18. This decline compares with growth of 2.0% year over year in December and 3.0% year-over-year in January.
What may really hurt is that TrimTabs noted that the year-over-year comparisons of these tax collection flows indicate that the U.S. economy has been decelerating since last fall. It further said that the flows turned flat-to-down in the past four weeks and could be headed for a recession if this trend continues.
It seems to me that if you’re reporting increasing incomes while withholding decreases, as the Bureau of Labor Statistics has been doing lately, you’re actually saying that income inequality is is becoming greater and, possibly, nothing whatever about wage income. I’m not sure how you reconcile the ideas of a continuing recovery with decreasing withholding.
I’m not sure how you reconcile the ideas of a continuing recovery with decreasing withholding.
As you point out, it could also be a sign of growing income inequality. And by “recovery” they really mean recovery for rich people, including big politicians. So they can still fly the “MISSION ACCOMPLISHED” banner with a straight face, because they just don’t give a fuck about anyone else.
Zerohedge reported on this in the last couple days. Some stats are simply less easy to manipulate.
I’m sure steve, Menzie Chin and the JPMorgan Econ department can all explain to us why we are “poised for growth.”