Prepare your wallet for extra $600-White House, Congress finalize tax rebate deal to bolster economy
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Most Warren County taxpayers will find out in the coming months.
Congressional leaders announced a deal with the White House yesterday on an economic stimulus package that would give most tax filers refunds of $600 to $1,200, and more if they have children.
The rebate checks are an effort to jump start a sputtering economy by putting money directly in the hands of consumers.
According to yesterday’s agreement, individuals who pay income taxes would get up to $600, working couples $1,200, and those with children an additional $300 per child. Workers who make at least $3,000, but don’t pay taxes, would get $300 rebates.
Warren County residents are already thinking about ways to spend the extra money.
‘I’ll probably take the kids somewhere, maybe to the aquarium in Chattanooga,’ said Valerie Norrod, who is a mother of four. ‘We usually use our tax refunds for vacations. I’ll also think about clothes, shoes and those type of things.’
Loretta Jones said she isn’t sure exactly what she’ll buy, but she said don’t worry about her spending it.
‘I’m good at supporting the economy. I love to shop,’ said Jones. ‘I couldn’t tell you what I would get right now. I’ll probably end up at Sam’s Club.’
America is not enjoying robust economic times with uncertainty on Wall Street and many people struggling to pay off significant credit card debt. Home mortgage woes are also expected to become a problem of staggering proportions.
To help remedy this problem, President Bush and financial leaders have been working on an economic stimulus package. The rebates will go to 117 million families and cost the government about $100 billion, according to congressional reports.
Taxpayers were treated to a similar rebate in 2001, although the checks were for $300. Economists differ on the effectiveness of that rebate program, with some contending a large segment of the population did nothing but save the money.
Local musician Crue Shay said there’s no fear of him tucking away his rebate check and not spending it. He says there are always music-related items to buy.
‘I’ll probably use my money to buy recording equipment,’ said Shay, who is a rapper with the group DVD Music. ‘We have everything we need, a mixer and a mike, but we could always use better equipment. That makes a big difference.’
Congressional leaders say they want to act on the agreement as soon as possible to get rebate checks in the mail quickly.
Tax rebate
‘ For more details about yesterday’s deal, see 2-A
‘ Bob Corker is skeptical of the stimulus plan, 2-A