A new study adds fuel to the fire over the impact of higher taxes on discretionary spending.
The study, conducted by the American Affluence Research Center, finds most affluent consumers will maintain spending levels despite expecting lower income due to higher taxes. It defines the affluent as the wealthiest 10% of U.S. households, which it notes accounts for almost half of all consumer spending.
While mildly optimistic in their outlook for business conditions and the stock market, the affluent consumers seem to be more positive than the general public, as evidenced by volatility and declines in the Gallup weekly Economic Confidence surveys in March and the Conference Board’s Consumer Confidence Index for March. The Spectrem affluent consumer research in March was generally consistent with the March survey of the American Affluence Research Center.
Key findings from the Spring 2013 Affluent Market Tracking Study include the following: