The latest report on personal incomes and outlays showed the expected collapse in personal incomes post the pre-fiscal cliff surge.  However, the reversion was more than expected.  Today's charts of the day present the effects of both the reversion in incomes, post the special yearend payouts to avoid the impact of higher taxes, and the impact of the payroll tax increase.

The first chart shows real (inflation adjusted) personal incomes.  The effect of the surge in payrolls due to concerns over the "fiscal cliff" is clearly shown, as well as, the subsequent reversal in January as real incomes slid by a whopping 3.6% or $437 billion.