Americans Plan to Save, Not Spend, Tax-Rebate Checks, Poll Says

[Robbien]

Source: Bloomberg

Feb. 28 (Bloomberg) -- The stimulus plan Congress approved this month may provide less of a jolt to the U.S. economy than intended, as most Americans plan to save rather than spend their tax rebates, a Bloomberg/Los Angeles Times survey shows.

Only 18 percent of respondents said they will spend their rebate on purchases, while slightly more than three in 10 said they prefer to use the money to pay off debt, and a third said they'll pocket it.

``People in Washington assume that about 40 percent of the money will be spent,'' said Douglas Elmendorf, a senior fellow at the Brookings Institution, a Washington-based research organization. ``Much less would be disappointing.''

. . .

Plans to spend the rebate were consistent across income groups: About two in 10 respondents in households with less than $40,000 annual income as well as those making more than $100,000 said they'll spend the money. A plurality of respondents in the lower-income group said they'll pay off debt, while saving the money was the most popular plan among the wealthier group.



Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=aLzL2JgIERvc&refer=home

[KansDem]

1. "slightly more than three in 10 said they prefer to use the money to pay off debt"

That's me! :D

[Aviation Pro]

2. Chalk up five car payments for me....

...thanks, but no thanks, Mr. Insane President, I don't don't need an HDTV, my fifteen year old set works just dandy.

[kimmylavin]

24. It won't, soon.

Sneaky little thing happening.
On February 19th of next year, there will be no more analog television signal broadcast.
The only way to watch any television is to have an HDTV.

Its a bit ridiculous...

[Aviation Pro]

26. Who says I spend money on cable?

DVDs will still work fine.

[yorkiemommie1]

27. Aren't there converter boxes available?

and coupons for them?

http://dtvfacts.com/82/how-do-i-get-40-dollar-converter-subsidy-coupon/

[OwnedByFerrets]

33. That is not true....

your tv must be digital capable....it has nothing to do with High Definition.

[RebelOne]

41. If you have cable or satellite, you will have no problem.

[Greylyn58]

44. Actually, you don't need HDTV to view TV after the change in Feb '09

I work in the electronics dept of my store. If you are currently connected to cable or satellite then you are set. You won't need anything else. Also if your current TV is SDTV (Standard Digital TV), or if your DVD player or VCR/DVD combo has a digital tuner inside then you are also alright.

The only people who will need to buy one of the converter boxes out on the market are those who currently receive their TV signal via rabbit ears or a roof-top antenna.

The government is issuing a $40 coupon to pay for most of the box and you can apply for them at:

http://www.ntia.doc.gov/

You are allowed 2 coupons per household.

Hope all my info helps. :)

[liberal N proud]

3. I will spend it, on current debt.

But that little bit is not going to free up any cash to spend elsewhere. It will just be an extra payment for the year.
Probably my daughters student loan.

[Hugin]

4. Done spunt...

and then some.

[Cant trust em]

5. I think I'll blow mine on some hard drugs

get it? Blow. Hard drugs.

Boy am I in the late afternoon funk.

[mdmc]

23. hang in there

:pals:

[nancyr]

6. Maybe I'll buy some gas!

A few groceries too!

[PetrusMonsFormicarum]

7. "Economic Stimulus" is econ-double-speak bullsh*t

The hard cash behind this hard-cash infusion to America's taxpaying purses is borrowed money--borrowed from Abu Dhabi, Qatar, China, etc. These countries are only too happy to send their money to American shores, where most of it will undoubtedly find its way back into their pockets via our gas tanks and our orgies of Made-In-China consumerism. The Economic Stimulus is nothing more than a crutch, and a rubber one at that.

[kath]

28. well, as Huckabee(!) said: "We'll probably end up borrowing this 150 billion dollars from the

Chinese and when we get those rebate checks most people are going to go out and buy stuff that has been imported from China. I have to wonder, whose economy is going to be stimulated the most by the package?"

[sarcasmo]

8. Millionaire politicians never will understand the current suffering of the middle class.

A big fat kick and Nom.

[Hugin]

10. I find myself at a loss to name one I have anything in common with...

Kind of sad really.

[sarcasmo]

12. Don't feel sad, not many of us here on this board have anything in common with the Corporate WHORES.

[bdamomma]

39. those politicians are so detached from the American people

some don't the meaning of struggling.

[TheCowsCameHome]

9. I'll pay the oil man.

I wish I could save it.

[featherman]

11. We'll use it to replenish our gambling account - not kidding

But I guess that will help the economy of a couple of casinos at least

[slackmaster]

13. I'm going to pay down a loan balance with mine

:hi:

[Blue_Tires]

37. i'll whittle down the CC balance a tiny bit....

[Sarah Ibarruri]

14. They should have made it a gift certificate with an expiration date nt

[PearliePoo2]

15. I'll make an extra

payment on my HEQ loan.....get a little buffer.
I'm not going out and spending on toys or trinkets. Fuck Wal-Mart.

[OhioChick]

16. It'll Take Care of a Few Medical Bills Here. n/t

[WhinsChap]

49. Same here

And if there's any left after the 600.00 MRI bill is paid off... I guess I can buy a little gas.

[Barrett808]

17. What are the implications if I don't cash it?

'Cause I'd rather not have it taken out of my next year's return...

[crikkett]

19. That's the problem - it's only a loan

[sarcasmo]

48. This is the right answer, Don't cash it and send it back.

[Sailing]

18. What * DIDN'T tell you about the rebate...

According to a friend that is a tax attorney, it is only a loan against your 2009 tax return. So, what you get now, you loose a year from now. Why is anyone listening to anything that comes out of the mouths of these bastards.

So here is the scenario. Sh*t For Brains gives you some money now. He leaves office. You essentially pay it back after he leaves office and SFB goes around after saying "those baaaad democrats took away the money I gave you".

What am I doing with the money? What difference does it make. I'm not gaining anything here anyway. The only ones that will gain something are those not getting a tax return next year, and even they will have to pay tax on the rebate as income.

Here, read this link:

http://answers.yahoo.com/question/index?qid=20080227140037AAGUfRu

[brer cat]

22. Check back with that attorney.

I work for a CPA. He first thought it was a loan against next year's return, but told us yesterday it is NOT.

[last1standing]

20. The definition of insanity is doing something over and over expecting a different result.

This loan didn't help that last time and it won't help now. If congress was serious about stimulating the economy they're remove all funding from the Iraq War and spend 1/10 of the saved money rebuilding our infrastructure. This would not only provide jobs for the unemployed, which in turn would put more capital into the market, it would reduce the expense of transport for both goods and people allowing that money to also go into the market in the form of goods.

Instead, we're burning our future in the Middle-east and leaving this country to rot. I blame repubs AND Democrats for this.

[lonestarnot]

21. Wha? We outta stuff to make confetti for ticker tape parades for when we end the occupation?

[JackDragna]

25. I'm going to burn mine.

It's just an advance on the next tax year's refund, anyway. The jerks in Washington (of both parties) who passed this "relief" as some panacea can go jump in a lake.

[bdamomma]

40. throwing checks at us will do nothing for the economy.

what a bunch of stupid a$$holes, * is so arrogant towards the American people. I really hope to see the day when he and his cronies get their just dues.

[RebelOne]

42. Well, I certainly wouldn't burn it.

If it is an advance on next year's refund, that means all the less refund you will receive.

[JackDragna]

46. Well, I have to cash it for it to count, correct?

They can take their refund and stuff it.

[Trajan]

29. I greatly doubt this ....

Being short of money means it will be spent ASAP as soon as it arrives ....

Who the hell can save money ?

[hay rick]

30. fungible

I'll stick in our checking account and have no idea whether it's been saved or spent.

[GoddessOfGuinness]

31. Well duh...

The "rebate" will count as income on 2008 taxes. It just makes sense to squirrel it away.

[OwnedByFerrets]

32. Mine will go to paying off credit cards.....

period.

[Igel]

34. Planned to mostly save it.

Now planning to take a trip to Oregon. I.e., spend it.

Sigh.

[sofa king]

35. Save it for the gas pump.

[ordinaryaveragegirl]

36. Paying off bills here.

I should be getting $1500 or so, being married with 3 kids. It's going to pay off bills, and so is the regular tax refund. I'm trying to get out of debt before the economy gets any worse.

[bdamomma]

38. most people are going to using that money to pay bills

again, this stupid regime we have treats us more than consumers than citizens.

[4_TN_TITANS]

43. What a smoke screen...

I learned from the last Republican rebate when I went did the taxes the following year and we had to pay the money back. My 'rebate' will go untouched for when they ask for it back on the 2008 income taxes.

[RantinRavin]

45. Will the tax rebate be considered income and will I be taxed on it next year on my 2008 return?

2. Will the tax rebate be considered income and will I be taxed on it next year on my 2008 return?


No and no. The tax rebate is an ADVANCE CREDIT for tax year 2008 and will be calculated on your 2008 return. If you're due a higher payment, you'll get the remainder next year when you file. If you received a higher rebate (payment) than you should have, you DO NOT have to pay it back.

[Hestia]

50. If it is an advance against next year's taxes, then why not put it in a CD

(if you can still find good rates) until next December? I'll be dad gummed if I am going to write a check to the IRS because of this rebate check.

[semillama]

47. I actually am going to spend my check.

It's going to pay for my birding trip to Florida in May.