The increase in the payroll tax is slowing sales at Minneapolis-based Target Corp. (TGT), the second-largest U.S. discount retailer, where about a third of sales come from customers who earn less than $50,000 a year, according to John Mulligan, the firm’s chief financial officer.
“The payroll tax increase had a significant impact on them,” Mulligan said in a May 30 presentation. “They were struggling before. They’re struggling now. And we continue to see that in our business.”