These tax rebates are meant to stimulate the economy, but I do not believe it does. The gov't wants you to get the money to go out and spend it in order to avoid a recessision.
Most people use the cash to pay off credit card debt. This does not stimulate the economy. Running up the debt a while back did. Others like on this forum, put the money into savings and/of investments. Again, this does not stimulate the economy.
Back in 2001, when Bush did this, I do not believe it stimulated the economy. What did stimulate it was the dropping interest rates. Because everyone refinanced or got Home Equity Loans to either improve their homes or go out and spend it. I do not think this will be the case this time around.
Don't get me wrong. I'm all for getting a tax rebate. As president Regan beileved, I know better how to use my money than the gov't does. I just don't think this tax rebate will accomplish what a lot of politians are hoping for.
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