This year you might be seeing a bigger tax refund or maybe you will owe less. You can thank Mr. Bush for that.
Just like in 2001, the President is calling for “direct and rapid” tax relief for American tax payers in order to spur the economy. The details of this tax relief are unspecified as of yet. But back in 2001 individuals got $300 and families received $600 in the form of a rebate. According to this article 40% of this money was spent within days and two thirds of it was spent six months after it was distributed.
This time, according to an article in the Wall Street Journal*, Mr. Bush is aiming at giving $800 to individuals and $1600 to families. The main goal of this tax incentive is to increase consumer spending, because that’s just what we need. So, if you were to get any of this money will you be doing your civil duty and dumping the money back into the economy?
We must remember that there is not such a thing as a free lunch.
*You may need a subscription to the WSJ in order to read the full article.