What will people do with their IRS rebate?

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News 12 at 6 o'clock, April 28, 2008

AUGUSTA, Ga.---The IRS has started making direct deposits into some taxpayers' bank accounts, but it's unsure whether the economic stimulus plan will really boost our economy.

It depends on what people choose to do with the rebates.

"I'm going to take my wife on our 40th wedding anniversary cruise," said Tom Nidiffer.

"Just get out of debt, out of the credit card crunch," said Mathew Hagan.

"My whole family needs eyeglasses," said Sandra Bowers. "So we're all gonna get new glasses and contacts."

"I'm just gonna put it into savings," said Dan Wilson.

There are lots of ideas out there, but spending it is what the government really has in mind.

That's what Travis Wilson plans to do.

"My wife is sick of our like old probably 1980s version television," he said.

This rebate means a re-vamped TV set for him, but are most people ready to spend like Wilson? News 12 took a poll in January and only about one in five people planned to put the money back into the economy.

"That doesn't have that short-term boost in the economy that they're looking for," says economist Dr. Mark Thompson. He believes the stimulus plan probably won't work like it's supposed to.

He says people would actually have to spend more than they usually do, but he believes most people will save the money or pay bills, just like Delma Reames.

"[I'll] keep paying bills and keep the kids in college and keep us going," Reames said.

She says with higher gas prices, it's hard to spend on anything fun, even though that's what she'd rather do. She'd rather use the money for a vacation to spend time with her family.

It's not in her near future, but it's the kind of spending the economy needs.

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