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(KSL News) The Internal Revenue Service (IRS) says in a couple of months about 130 million American taxpayers will receive tax rebate checks. Those checks are part of a $165 billion economic stimulus package. What will the impact be on Utah? And, should taxpayers spend or save money from those rebate checks?
Tonight, Eyewitness News spoke with Sharla Jessop, of Smedley Financial Services, and Juliette Tennert, the chief economist of the Governor's Office of Planning and Budget, to help answer these questions.
Juliette Tennert says of $165 billion the government plans to hand out, about $1.5 billion is going to make its way to Utah. That translates into a maximum of $600 per individual taxpayer, $1,200 for joint filers, and taxpayers with children will receive an additional $300.
But, will those rebate checks have any real impact on Utah's economy? "We expect they most certainly will," Tennert said. "Studies have shown that in previous packages that have been similar to these, consumers actually do go out and spend that new money in the economy."
Tennert says the state expects approximately two-thirds that "new money" to be spent within six months of receiving it.
In order to receive a check, Tennert reminds that you must file a tax return for 2007 by April 15, 2008.
When you do receive your check, you may wonder if it's more important to spend it than to save it. Sharla Jessop suggests that you decided what's best for your own family's fiscal budget. "Obviously lawmakers would like us to spend the money in the economy," she said. "But you need to take that money and do what's best for you and your family financially. Make it work. Make it last."
Jessop says that saving the money, or using it to pay off debts, also helps to stimulate the economy. "Once you've paid off a debt, that does free up some of your discretionary income and you can turn around and spend that into the economy," she explained. "You can also save for long-term plans where you could use the money at retirement or other things you're saving up for in the future."
For more details on the stimulus checks, click the related link .
