The slowdown in household income growth that has driven a large part of the recent spending downturn has come as something of a surprise. Particularly puzzling is the 12% or so rise in the amount of tax deducted from household earned income. Given that tax rates themselves have not changed, households could be forgiven for feeling more than a little hard done-by.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services