How Will the Tax Rebate Checks Affect the Economy?
Feb 15, 2008
Source: National Retail Federation
The National Retail Federation released a report detailing consumers' decision to spend or save the tax rebate checks that were recently approved by Senate. Conducted by BIGresearch, the survey found that consumers plan to spend 40.6 percent of tax rebate checks, which will provide an immediate $42.9 billion boost to the economy. Consumers will also use the rebates to pay down debt, save, invest and pay down medical bills.
"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. "While some will splurge on big ticket items, many consumers will use the checks for important day-to-day purchases." The survey also found that women plan to spend 42.2 percent of their rebate checks, while men plan to spend 38.7 percent, but both men and women plan to save 18.7 percent of the rebate. Young adults will spend the most of their rebate check, 46.2 percent.
"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."
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