The dividend and personalincome windfall from late last year may partly explain the healthy increase in consumer spending in January and February despite the big payroll-tax increase.
Of course, Fix The Debt while rejecting the idea of returning the tax rates for the upper 2 percent of Americans to the progressive rates of the Clinton era, thereby severely impacting on their personal capital gains and dividend income does appear prepared to support a proposal that would limit deductions as a way to raise revenue.
"Personal income in November and December was boosted by accelerated and special dividend payments to persons and by accelerated bonus payments and other irregular pay in private wages and salaries in anticipation of changes in individual income tax rates, " the Commerce Department's Bureau of Economic Analysis said.