$5.00 a gallon gas hits California…32 days of higher gas prices comes at tough time…
Most of the country’s 160 million workers are taking home less pay each week since the payroll tax cuts expired last month.
The government in 2011 had temporarily lowered the payroll tax rate for the first $113,700 of annual earnings in an effort to keep more cash in the pockets of Americans and provide a boost to the economy.
Now, workers earning the national average salary of $41,000 are receiving about $60 less on every monthly paycheck.
Smaller Payday Trims Workers’ Splurges as U.S. Tax Breaks Expire
Phoenix high school teacher Kenny Williams said he’s cutting back on his “family splurge fund” for movie and sports outings after the reinstated U.S. payroll tax lowered his first paycheck of the year by $30.
The 46-year-old single dad of two was shopping at the 99 Cent Only store in Phoenix last week to save money on groceries and partly offset the $60-a-month cut he expects in his take- home pay. Dinners out also will go, he said.
Increase 51 cents in 2 months
Consumers are taking another huge hit in 2013. First, the two percent Social Security tax hike began the year. Now, gas prices are soaring ever closer to $4 a gallon and have jumped 51 cents a gallon since Dec. 20.
According to the Oil Price Information Service, the national average for a gallon of unleaded was $3.21.9 on Dec. 20, 2012. Today, that price is $3.73.0. While there has been a steady increase, prices shot almost 9 cents just over the weekend.
This President’s Day also marked a full month of rising gas prices every single business day, following a very small early year drop. Gas prices began rising Jan. 18, from $3.29.3-a-gallon, and have soared since. If this increase continues, gas prices could threaten or even top the all-time high price of $4.11, set in 2008.
Up 96% under Obama…
(CNSNews.com) – The average price of a gallon of gas has increased 96 percent since President Barack Obama first took office in 2009, according to figures from the Energy Information Agency (EIA).
$5 Gas Returns To Southland
LOS ANGELES (CBSLA.com) — Gas prices in Southern California rose again on Monday, leaving some drivers paying over $5.00 per gallon.
CBS2?s Amber Lee reports the average price of a gallon of gas in the Los Angeles-Long Beach area climbed for the 25th consecutive day to $4.29 – over 50 cents higher than last month, according to the Automobile Club of Southern California.
One gas station in downtown Los Angeles was offering regular unleaded at $5.19 on Monday, prompting at least one potential customer to exit his vehicle, snap of a photo of the station’s prices – and then drive off in search of cheaper gas.
Gas Prices Surge To Highest Ever On This Day At Fastest Pace In Four Years
Despite being weeks away from the start of the driving season proper, gas prices – at the pump – have been surging recently. With premium now over $4 nationwide (over $5 in SoCal – up 25 days in a row), this is the most expensive gas has ever been for the second week in February despite gasoline being relatively well supplied.
Why 8% Unemployment, Or More, Could Lie Ahead
Severe fiscal tightening in the U.S. will lead to no growth or a contraction in the first two quarters of 2013 and will push unemployment over 8 percent, according to Lombard Street Research.