What will you do with the money? – 'Spend or save?'
14 Feb '08
3 min read
“To spend or save?” may be a question many analysts are asking about tax rebate checks, though a new survey finds that many families are planning to do both when the checks are distributed.
According to a new National Retail Federation survey, conducted by BIGresearch, consumers plan to spend 40.6 percent of tax rebate checks when they are distributed later this year, which will provide an immediate $42.9 billion boost to the economy.
The survey also found that the $105.7 billion distributed in tax rebates will be used to pay down debt ($30.0 billion), saved ($19.8 billion), invested ($4.4 billion), and used to pay down medical bills ($4.6 billion).
“Tax rebate checks should have the desired effect of both bolstering the economy in the short-term and putting consumers in a better position to spend for the future,” said NRF President and CEO Tracy Mullin.
“This stimulus package is a crucial component to economic recovery and will provide much-needed relief to American shoppers.”
Earlier, President Bush signed H.R. 5140, the Recovery Rebates and Economic Stimulus for the American People Act of 2008.
The $152 billion measure will provide tax rebate checks of up to $600 per working individual and $1,200 per married couple, plus $300 per child for families with children and new tax incentives for job-creating business investments.
“Many Americans will be wisely using their rebate checks to save, spend, and pay down debt, so the overall result will be positive for the U.S. economy,” said Phil Rist, Vice President of Strategy for BIGresearch.
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