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Slow and steady growth for San Diego

Jonathan Horn, U-T SAN DIEGO

Saturday, June 29, 2013

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The pullback could have come from tax increases to start the year, said Kelly Cunningham, economist at the National University System Institute for Policy Research.

The state sales tax increased 0.25 percent after California voters approved Proposition 30 in November to help fund schools. The measure also raised income tax on higher earnings.

At the federal level, the payroll tax holiday ended, meaning Social Security taxes increased from 4.2 percent to 6.2 percent on Jan. 1. That’s an extra $1,000 of federal taxes for someone making $50,000 per year.

“Just seeing the taxes going up, you’ve to got to cut back,” Cunningham said. “That’s the effect of higher taxes.”