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Bengus81

(10,078 posts)
5. Article about 2001
Mon Mar 16, 2020, 05:28 PM
Mar 2020
https://taxfoundation.org/did-2001-tax-rebate-checks-stimulate-consumption-economic-evidence/

Here's the one from 2001 and I knew we had received $600 I guess as a married couple or your tax bracket. What the hell good did that do?? I'll give you $600 now and you can pay me back later. We were way above a 10% bracket.

"Many households received income tax rebates in 2001 of $300 or $600. These rebates represented advance payments of the tax cut from the new 10 percent tax bracket. Based on a survey of a representative sample of households, this paper finds that only 22 percent of households receiving the rebate would spent it. Instead, they would either save it or use it to pay off debt. This very low rate of spending represents a striking break with past behavior, which would have suggested a much higher rate of spending. The low spending rate implies that the tax rebate provided a very limited stimulus to aggregate demand."

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