Tax Rebate Checks 2008: Refunds Start Going Out Today

WASHINGTON — Tax rebates will start going out today, earlier than previously announced. President Bush announced the change in schedule on Friday.

"Starting Monday, the effects of the stimulus will begin to reach millions of households across our country," Bush said Friday in remarks on the South Lawn of the White House.

Those first rebates will be directly deposited into people's bank accounts. The Internal Revenue Service had been saying direct deposits wouldn't start until next Friday. Bush said paper checks would begin going out on May 9, a week earlier than previously announced.

"The money is going to help Americans offset the high prices we're seeing at the gas pump, the grocery store, and also give our economy a boost to help us pull out of this economic slowdown," Bush said.

Democrats said they were glad the rebate checks were about to go out, but suggested that multinational oil companies were not among the businesses the stimulus package was originally designed to help.

Bush's emphasis on fuel and food prices differed from other comments he's made since signing the economic stimulus legislation, intended to aid the economy by boosting overall consumer spending _ which accounts for roughly two-thirds of the nation's economic activity.

Bush has suggested the rebates could trigger a spending spree. "When the money reaches the American people, we expect they will use it to boost consumer spending," he said last month.

By saying expressly that people could use these one-time checks to pay for such necessities as food and gas, Bush underscored the deepening challenges facing the economy.

Democrats were quick to pick up on the change of focus.

"It's galling to think that taxpayers' stimulus checks will be lining the pockets of OPEC. The sad truth is that the average American family will spend almost their entire stimulus check on higher gas prices this year," said Sen. Charles Schumer, D-N.Y., chairman of the Joint Economic Committee of Congress.

OPEC is the Organization of Petroleum Exporting Countries.

"Unless the administration gets OPEC to increase oil supply, American consumers are going to be in for a scorching summer of $4 gasoline with no relief in sight," Schumer said.

House Speaker Nancy Pelosi, D-Calif., agreed that people "need this rebate to cope with the rising cost of gas and groceries." She said that, while the rebates would help to get the economy moving, there was a need for a second stimulus package "and we have begun some conversation with the administration and Republicans."

As he had earlier in the week, Bush used the word "slowdown" to describe the state of the economy. He has denied that the nation is in a recession, although many economists say it is.

"It's obvious our economy is in a slowdown. But, fortunately, we recognized the signs early and took action," Bush said.

The rebates _ up to $600 for an individual, $1,200 for a couple and an additional $300 for each dependent child _ are the centerpiece of the government's $168 billion stimulus package, enacted in February. Roughly 130 million households are expected to get them.

Bush made the comments before boarding his helicopter at the start of a day trip to Connecticut.

People must file a tax return for their 2007 income to be eligible for a rebate check.

The IRS now says all checks for those who filed tax returns on time are scheduled to be deposited or mailed by July 11.

The economy _ burdened by the collapse of home prices, a financial and credit crisis, and now rising energy and food prices _ grew at an anemic 0.6 percent in the final three months of last year and is believed to have gotten even weaker in the first three months of this year.

The government will report on the first quarter's performance next week.

With the economy faltering, the nation's unemployment rate has climbed to 5.1 percent, the highest since September 2005, when it suffered from the devastating blows of the Gulf Coast hurricanes. Job losses in the first three months of this year neared the quarter-million mark.

Foreclosures have surged to record highs and financial companies have taken multibillion losses on mortgage investments that soured. The situation has sent a tremor through Wall Street and has sent the administration, Congress and presidential contenders looking for ways to provide relief.

Comments

[hhkeller]

They should have invested the same money in building new bridges and fixing the cities schools.
This would have multiplied the effect of the national cash infusion.
Another short sighted move by a President who wasnt prepared to be President.

[Tulka2]

It's official. Can any serious person now contend we are NOT living under National Socialism?
1.Business and Government conspire. 2. They take the money and make War the product. 3.They pound all our money, all our children's money, into a hole in the sand. And finally, 4. They give a pitance back to us because we are restive.
National Socialism. There can now be no doubt.

[totalliberal]

Thanks Mr. President of here. The workers of Costa Rica thank you also as the money will be going toward an extra washroom in my house down there. Sorry I had to move, but the health-care there only costs $850.00 a year for full coverage.

[Wiredwilly]

It's like the Czar of Russia throwing crumbs to the peasants.

[The 13 Colonies]

Rebate and switch.

[paulmedina]

Um, not getting one. I made $8k more than the limit for a single person. Unfortunately, I am not allowed civil-marriage so my spouse of 13 years and I couldn't file jointly. Had we been allowed we would have qualified for a rebate check.

Anyway, had we received one, we would have banked it. Although, I think instead, as someone else suggested, all the money going to the rebate program should have been funneled to social security and locked. Or used to fund health care for children.

[KOisGod]

Does a coupon for some shiney objects and some of that White Man's fire water arrive with the check?

We don't NEED NO STINKING CHECKS! WE NEED OUR COUNTRY BACK !

[skip4Obama]

My check will be going to the Obama campaign! I'm feeling that it will be a great way to help out on his general Election campaign and kick McBush butt.

[BronxBorn]

Republicans like to say that Democrats throw money at problems.

Really?

Then WTF is sending out checks to Americans, that didn't ask for them ?

[Tulka2]

Yep, what can this be called except National Socialism?

[dadw5boys]

THIS IS HISTORY REPEATING IT'S SELF!!!!!!!!

BUSH WENT TO FAR IN TEXAS WITH TAX CUTS THAT HE HAD TO RAID THE TEXAS TEACHERS RETIREMENT FUND TO PAY FOR THE TAX CUTS!!!!!

THEN ENRON AND WORLD COM FAILED AND NOW MANY TEACHERS CAN RETIRE BECAUSE THE FUND WAS NEARLY BROKEN AND THEY WOULD GET LITTLE IN RETIREMENT!!!!

SAME THING THEY ARE DOING TO YOUR SOCIAL SECURITY ....

DOES A LOCK BOX LOOK GOOD TO YOU NOW -- HMMM MR. RIGHT WING CHRISTIAN?

[Mike169]

Ironically I'll use the money to pay my taxes.

[Moxo]

Shouldn't that check say, "For recovery after 12 years of GOP Corruption and Mismanagement?

[dadw5boys]

PAYING YOU OFF SO YOU WON'T LYNCH THEM!!!!!!

[sandiegoconservative]

I am curious as to what the financial status of most of the people who comment on here are. I almost never hear anyone say that they are well-prepared for economy downturns, or that they have made good sound financial decisions, regardless of the economy. Instead, everyone blames the current administration for all of their woes, when the Bush administration is only responsible for some of them.

I am 31 and my wife is 30. We have a family, a mortgage, other bills and expenses. We do not live extravagant lives and do not make a ton of money. Yet through saving, budgeting, re-financing our house to a fixed rate, and taking care of our older, cost-efficient vehicles, we are not in dire straights and have only been working professionals for about 7 years now. We don't really need the stimulus rebate to get by because we were prepared for the worst. We will be using it to replace the carpet in the house with new flooring.

Why is it that so many of you are not prepared for any downturn, big or small? Not to chastize, I am just curious.

[liveandlearn]

well, sandie, if i am careful i can just get by with my disability check. but that was before the recent big inflation. i'll make do somehow.

[ndnndpendent]

Then you are lucky--lot of people are helping to care for an aging parent and the rising costs of that and there are any number of reasons why Americans cannot save. You did not say what your enthnicity is but I know for many in the losing end of the mortgage crisis, the subprime mess resulted from predatory lending practices and this will largely affect 'diverse neighborhoods.' The subprime market exploited the financial/race gap in this country. This is being framed by the National Fair Housing Alliance as a fair housing issue at it s roots. There is very relevant research they have done on this issue, they have a 2008 report on the subprime mortgage crisis on their website, I recommend that everyone read it. This report gives a comprehensive look at the origins of housing discrimination, redlining and blockbusting that began with northern industrialization. It s pretty fascinating to read. The financial system favors one race of people in this country and that cant be denied.

[sandiegoconservative]

Thank you for responding. To answer your question, I am white and my wife calls herself a "mixture of races" with some caucasion/european, a large part african, and even a large part of hispanic blood mixed in. And I help care for my father who cannot work anymore and my Mom who can only work part time, by taking care of part of their mortgage and other expenses.

I guess I just don't understand why there seems to be so few people out there who are ready for downturns, even though it does not present itself in most of the community areas I live and work in.

[pokethis]

Currently I am prepared. A lot of people were drawn in by easy credit and the "people should go about shopping" mentality of the Bush government. Sure, it wasn't smart but a majority of people believed they could it and the economy showed no signs of slowing.

What would happen if one or both of you lost your jobs? Are you that prepared? I don't think the people at Bear Sterns were. They were encouraged to buy the company stock (remember Enron?).

While you may be prepared you must remember what Thomas Jefferson said - Where two or more businessmen are gathered they are working out how to defraud others.

Good work on being prepared but never think a disaster can't happen even to the best prepared.

[sandiegoconservative]

If either of us lost our jobs today, we have an emergency savings account to cover all expenses for 8 months. If there was a major problem, it would likely cut into that, but I have 4 rotating CD's on a three month basis for major problems. I just keep reinvesting them on the cycle. We hope to have a years worth of savings up from the 8 within the next 12 months or so.

I am just tired of seeing so much wate by people who then try to complain about it, while the people that were reasonable in their lifestyle get screwed for one reason or another, and do their best to survive. I use a neighbor of mine as a perfect example all the time.

He and his wife own pretty much every modern day piece of technology and drive leased vehicles with high car payments. They dug into their house with a re-fi for some unbelievable upgrades to their house which do not do much for value and now with everything being as it is, they are struggling, and all I hear him complain about is how it is Bush's fault. In that instance, Bush is almost completely not at fault.

[Moxo]

Instead, everyone blames the current administration for all of their woes, when the Bush administration is only responsible for some of them.
-------------------
Sadly, the ones the Bush Adminsistration are responsible for are the the one's causing all the problems.

[citipearl]

I am over 50, have been divorced for 20 years and have raised three children who are now in their twenties. During those years, after I was able to find full time permanent employment as a mother of three children (no small feat!), my employment was interrupted as I worked for companies that went bankrupt, merged or downsized out of existence -- my earnings have gone up and down as employers expect more and compensate less. Jobs these days are "at will" and employers will let you go with no reason or recourse, regardless of your job performance, attendance, flexibility -- and use fear to keep you in your place. Age-ism is alive and well, also.

Add to that costs of caring for one of the kids who has had a chronic, persistent illness, and voila! Savings? Retirement? Vacations? What are those?

I drive a base model Toyota Corolla which is financed and therefore could be gone if I lost my job. I lost my last home through foreclosure (see helping child with chronic illness above) and have no assets and plenty of debt (very little of which is credit card debt).

I have spoken with many people who have similar stories -- worse if they are coping with illnesses. Two of them were homeless. Others, like me, would be there, too if not for the help of friends and family during tough times.

Does that answer your question?

[Trittydi]

F**k you and your "rebates" Nancy. You can stick it where the sun don't shine.

What makes you think a few measly dollars will in any way help American Families?

You and the idiots you work with on Capitol Hill, are so far from having even a clue ,about the true difficulties we are facing right now, that it is laugh out loud pathetic.
*

[JoeBlough]

Trittydi -
Are you saying the government should give you thousands of dollars, instead?

You should be thankful you're getting anything. Some people just can't be pleased.

[citipearl]

I'm sorry -- the goverment is TAKING thousands of dollars from ordinary working people and spending it with abandon (see: Iraq invasion and occupation).

[Harinama]

So lets see, it's ok to...

Have my goons strong-arm 10's of thousands of $$ from me in taxes to support foreign wars that only enrich them, over resources that are now 2.5x more expensive for me to buy(gas). And they lovingly want to give $600 back.

That is utter BS, time for me to be able to decide how and where my tax dollars are spent. (hint hint it ISNT WAR).

This is quite obviously just a sucker to keep the "suckers"(read American citizens) at bay.

I'd give mine back if i knew BUSH would choke on it...

[oncesung]

Hasn't anyone read Naomi Klein's book The Shock Doctrine. What we are experiencing now in the US is precisely what our government has helped orchestrate all over the world - the Milton Friedman economic nightmare ala "economic shock treatment" which is supposed to yank our economy back on track. In fact, of course, all it has ever done is create very quickly the new SuperRich and increase to staggering proportions the number of economically broken and poor. The whole point of this stupid adventure is to reduce the middle class (because we demand so much that could otherwise be owned and consumed by the deserving rich). The stimulus payment is a little candy to deflect our attention from the bitter economic pill being shoved down our throats.

[mediamarv]

Candy indeed.

I can already see the headlines, 2-3 months from now:

Stimulus checks had no effect on recession: Now what??

[Nofoolhere]

To project the message of Klein"s brilliant book into our future, we can expect to find:

further impoverishment of our people by continuation of the induced high gasoline costs
continued betrayal of our workers by off shoring more and more of our jobs
increasing public rage leading to food riots and more and more street protests
the seeding of those peaceful protests by right wing thugs, as in Nazi Germany of the early 1930s
imposition of martial law allegedly to "protect the public" from the violence present in those riots
manufactured "incidents" of Iranian aggression in order to justify another war
removal of our soldiers from Iraq in order to send them into Iran,
prevention by any means, of Obama being elected to office
"postponement" of the November election in order to insure "continuity of government" during the existence of a national disaster.

If you think this projection is off the wall fantasy, then you haven"t understood Kline"s thoroughly documented thesis. You can post this prediction in a time capsule.

[spyder03]

The rebate check is a joke just like the economic expert in chief , if Bush thinks this is going to get the economy going he is a bigger idiot then i thought. Americans will get their rebates, jobs will be created the economy will once again blossom and it will be all due to the genius of Bush and our congress more out of touch then any time in our history. If these idiots ran a business they would of been fired long ago. If the American people were paid based on Bush's ignorance there would be no need for a economic stimulus check.

[thegreatgiginthesky]

Forget about being fired, the business would have surely gone bankrupt.

[JoeBlough]

All of Bush's business endeavors have failed.