Tax rebate checks to pump 43 billion into economy

According to a new National Retail Federation survey, conducted by BIGresearch, consumers plan to spend 40.6% of tax rebate checks when they are distributed later this year, which will provide an immediate 42.9 billion boost to the economy. The survey also found that the 105.7 billion distributed in tax rebates will be used to pay down debt (30 billion), saved (19.8 billion), invested (4.4 billion), and used to pay down medical bills (4.6 billion).

 “Tax rebate checks should have the desired effect of both bolstering the economy in the short-term and putting consumers in a better position to spend for the future,” said NRF CEO Tracy Mullin. “This stimulus package is a crucial component to economic recovery and will provide much-needed relief to American shoppers.”

While women will spend a larger percentage of their rebate check than men (43.6% vs. 37.3%), both genders will plan to set aside the same percentage for savings (18.7%)  Young adults 18-24 will spend more of their checks (46.2%) than any other age group.