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

What is a jumbo mortgage and when do you need one?

  What is a jumbo mortgage and when do you need one? See what triggers these high-dollar home loans that have more demanding requirements.The jumbo loan threshold is $424,100 in most of the United States, though in the highest-cost areas loans have to go over $636,150 to reach jumbo territory.

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: Fewer Dems are 'extremely proud' to be Americans this Fourth of July .
A new poll has found that pride in the U.S. has declined among Democrats under President Trump. According to the Gallup poll, just 32 percent of Democrats say they are "extremely proud" to be American, down from the 43 percent who said the same in 2017.Confidence in the state of the country was already on the decline, even before Trump took office, according to the poll. In 2013, for example, 67 percent of Democrats were "extremely" or "very" proud to be American in that year, according to Gallup.A new Gallup poll did find that Americans have been feeling better about their personal freedoms over the past year.

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