12/26/2024

U.S. After-Tax Incomes Rise Due to Tax-Code Changes, Spending Slows

The incomes of U.S. households jumped in January, reflecting tax law changes that are reducing tax withholding and led to one-time bonuses for some households.

After-tax income, including earnings from salaries, investments and other sources, rose 0.9% in January from December, the Commerce Department said Thursday. That matched the largest monthly gain since December 2012, a month when incomes were shifted by some individuals and their employees in anticipation of looming tax increases on high-income households.

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