Republicans and Democrats hailed the newly announced income tax rebates as a preventative measure to ward off recession. The rebates amounting to $600 for individual taxpayers and $1,200 for joint tax filers are supposed to ratchet up consumer spending. Even those earning $3,000 or more would get $300 back, even though they do not pay income taxes.
The goal of this is to provide a boost to an ailing economy that is by some accounts already falling into recession. However, these rebates will not have the intended effects. (more…)
