The U.S. payroll tax increase that took effect this year may cause seven out of 10 Americans to curtail spending, especially on big-ticket items such as cars, according to a survey by the National Retail Federation.
About 73 percent of consumers said their spending plans are taking a hit, the Washington-based trade group said, citing a survey of 5,185 people conducted by BIGinsight from Feb. 5 to Feb. 13. More than a third said they’ll reduce how much they dine out and 25 percent said they plan to cut back on small luxuries such as manicures and trips to coffee shops.
