There’s been a lot of hype lately about a coming recession. There has also been a great deal of hoopla surrounding today’s expected revelation of a Bush economic stimulus plan. A plan that many agree will likely involve a tax rebate of sorts. Which is why I found this tidbit, emailed to me by Lindsay Bechtel at the Country Financial Security Index, rather interesting:
While 30 percent of Americans received a significant income tax refund
last year, less than half (46 percent) used that “found money” toward
improving their long-term financial security.
Men (53 percent) were much more likely than women (40 percent) to use their refund for improving long term financial security.
This is, of course, “The Plan.” The government actually wants people to spend their money rather than save it or pay down debt. CNN Money reports on what Fed Chair Ben Bernanke had to say to Congress about the matter:
“Putting money into the hands of households and firms that would spend it in the near term” is a priority, he said.
Translation? Although it would be better for you personally to plan for your financial future with a tax rebate, the government hopes to high heaven that you’ll run out and spend it.