The IRS rebate checks started going out today. Taxpayers who received a 2007 Federal Income Tax refund electronically will receive their rebate in like manner. For everyone else, checks will be mailed. The process will take several weeks and is expected to be completed by July.
Some people I talked to aren’t sure if they will be receiving a check, while others are expecting one, but don’t know how much it will be. The IRS correspondence I was sent included enough vague verbiage to leave me unsure of what amount to expect. So, playing it safe, I planned on nothing; therefore, anything would be a pleasant surprise.
My pleasant surprise showed up in my checking account this morning, catching me completely off guard.
The IRS hopes that everyone will go out and spend their money right away. In doing so, that will stimulate the economy. Better yet will be if the person or company that receives your spent rebate, turns around and spends it too. That way, a powerful trickle down effect will stir the economy and jump start growth. If it happens quickly, then everyone running for re-election can claim they helped restore the economy and bolster consumer confidence.
What the IRS doesn’t want is for people to save their rebate checks. However, it seems that would give the financial institutions more money to loan out. I think that would be good for the economy, too, but that’s not what Uncle Sam wants.
As for me, I’m planning to save it (but don’t tell my wife).