Offbeat Almost 40 percent of Americans' tax cut goes to pricier gas

19:17  12 july  2018
19:17  12 july  2018 Source:   qz.com

The Incredible Amount of Money Americans Spend on July 4

  The Incredible Amount of Money Americans Spend on July 4 Americans will spend $6.9 billion on food for Independence Day.Most Americans plan to eat their way through the July Fourth holiday. It’s reported that spending on food for cookouts and picnics is expected to reach $6.9 billion, serving as the second-highest amount in the history of the NRF survey. Last year’s $7.1 billion set the record, but because the Fourth of July falls on “hump day” in 2018, fewer people are free to celebrate.

A gas pump nozzle is seen at a gas station as reports indicate that the price of gas continues to rise. (Joe Raedle/Getty Images). Let’s say your car holds 12 gallons of gasoline . If you are in the bottom 20 percent of Americans in income, we have some bad news for you: There goes your tax cut .

Nearly 20 percent of US greenhouse gas emissions come from cars and trucks. South, those " tax cuts " are NEVER going to occur for the average American . It's going to add 1.8 trillion to the national debt and give scads of cash to the very richest.

Gasoline prices in the US are up around 15% since the start of the year, due to price increases in the global oil market. That equates to an increase of about $30 per month in how much the average American consumer spends on gas, according to Bank of America Merrill Lynch analysts.

For the typical consumer, the increase in monthly spending consumes almost 40% of the tax cut benefit of $78 per month, the analysts estimate.

And it looks like interest rate hikes, combined with higher consumer prices resulting from tariffs, could cancel out even more of the tax cut this year.

Increases in rates by the Federal Reserve will likely be passed along to borrowers in many adjustable-rate products like credit cards. If the Fed hikes rates four times this year—a good bet—its benchmark rate will rise by a full percentage point. According to calculations by NerdWallet, a 1% increase by the Fed would boost the average household’s interest payments on credit card debt by $5 per month.

On tariffs, it’s anyone’s guess how severe the current trade war could get. But Bank of America Merrill Lynch analysts estimate that a 10% tariff on imports from China would increase US consumer prices by 0.2 percentage points. For the average American, that adds an extra $10 per month to their usual purchases.

By the end of the year, then, the extra $78 per month that landed in Americans’ pockets from the tax cut could potentially erode to $33 a month, once increased oil prices, higher interest rates, and the impact of a trade war all take their cut. Don’t spend it all at once.

Poll: Half of Americans Think Trump Acted ‘Treasonous’ in Helsinki .
Photo Illustration by Kelly Caminero/The Daily Beast President Donald Trump has repeatedly defended his extraordinary performance at a summit with Russian President Vladimir Putin on Monday in Helsinki, dismissing the “many haters” who wanted to see “a boxing match.” Americans are far from convinced, according to a new Daily Beast/Ipsos poll. Nearly half of the respondents (49 percent) said they agreed with assessments that Trump’s performance at the summit could be described as “treasonous.” That included 21 percent of Republican respondents. By contrast, a mere quarter (27 percent) of respondents disagreed with the assessment of treasonous behavior.

—   Share news in the SOC. Networks

Topical videos:

This is interesting!