Survey: Higher Taxes Haven’t Hampered Spending by Wealthy

Thursday, 28 Mar 2013 08:50 AM

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The higher taxes imposed on those with income of more than $400,000 a year aren’t hampering their spending, investing and charitable giving habits, according to the Shullman Luxury and Affluence Monthly Pulse.

The survey puts a dent in the argument that a tax hike on the wealthy would be disastrous for the economy. The tax increase was implemented in January.

The survey found that 55 percent of people with income of $500,000 or more said higher taxes haven’t made a difference in their spending plans, CNBC reports.

Editor's Note: Startling Proof of the End of America’s Middle Class. Details in the Video

Among those making $250,000 or more a year, 61 percent said taxes haven’t affected their spending plans. People in that group will see some of their tax deductions and credits phased out.

When it comes to investing, 59 percent of those making $500,000 or more said higher taxes haven’t affected their plans. The total is 64 percent for those making at least $250,000.

As for charity, 55 percent of those making $500,000 or more said higher taxes haven’t affected their giving plans. Meanwhile, 62 percent of those making $250,000 or more said the same thing.

The wealthy, infused with stock market wealth and improving home values, are keeping the consumer sector afloat, while the non-wealthy, struggling with a payroll tax increase on top of a bleak job market and higher gas prices, are dragging it down.

"People in the top half of the income distribution are doing just fine. They're spending enough to keep the economy moving," Mark Zandi, chief economist at Moody's Analytics, tells The Wall Street Journal. "But the lower half is having a difficult time keeping their heads above water."

Editor's Note:
Startling Proof of the End of America’s Middle Class. Details in the Video

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