Tax Rebate Checks Going Towards Necessities
About $42 billion in tax rebate checks should start hitting the mail this week. The checks are intended to stimulate the economy. Whether they do that or not remains to be seen; many families say the checks will go toward paying for such basic necessities as groceries and gas, both setting new price records almost daily.
The tax rebates — ranging from $300 to $600, or up to $1,200 for married couples who file jointly — will be available to some direct-deposit taxpayers as early as today, though checks by mail will take longer. Many parents will receive an additional $300 per child.
A survey conducted for the National Retail Federation finds that the biggest leap in rebate spending will come at the gas pump, as 17.2 million people plan to use at least some of their tax rebate check to pay for gas, up from 12.1 million people who planned to do so in February.
The rising cost of everyday items like milk, bread and rice — and even chicken — means that consumers will wind up spending a bigger chunk of the checks on groceries, with 21.2 million people saying they will use a portion of the check for food, up from 20.4 million people in February.
