Shhh, low-information Obama supporters still think taxes only went up on millionaires and billionaires.
(Reuters) – Retail sales barely rose in January as tax increases and higher gasoline prices restrained spending, suggesting the economy got little help from the consumer at the start of the year.
The Commerce Department said on Wednesday retail sales edged up 0.1 percent after an unrevised 0.5 percent rise in December.
The modest gain, which was in line with economist’s expectations, suggested that households were responding to the expiration of a two percent payroll tax cut on January 1. Taxes also went up for wealthy Americans.
[…]Consumer spending accounts for about 70 percent of the U.S. economy and grew at a 2.2 percent annual rate in the fourth quarter. With households facing smaller paychecks and gasoline prices marching higher, the pace of growth in spending is expected to slow this quarter.