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Home > BizTimes Daily > Archives > May 7, 2008
Survey says rising costs of living will absorb most tax rebate checks
Published May 7, 2008 - BizTimes Daily
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The rising costs of living will absorb the bulk of the economic stimulus tax rebates for many temporary workers in Wisconsin and northern Illinois, according to a new survey.
The vast majority of respondents plan on spending their rebate money toward easing everyday costs for things such as gasoline and food, according to a survey of 100 temporary workers by QPS Companies Inc., a Brookfield staffing and recruiting firm.
For many, the stimulus check is already as good as gone, as the money is to be applied toward existing debt.
Seventy-one percent indicated that the rebates will not have the desired effect to help boost the economy.
Among the survey's findings:
- 29 percent plan on spending rebates on necessities such as groceries and fuel.
- 29 percent plan on using the money toward paying down debt.
- 26 percent plan on saving the rebate money.
- 9 percent plan on spending the rebate on vacation.
- 4 percent plan on using the money to help purchase an automobile.
- 4 percent plan on using the money to help purchase a house.
QPS cited two respondents as being typical of the sample.
Ashley plans on saving her rebate. "I need to beef up my savings to help with my sense of financial security. In this economy, you never know what may strike next: lay-offs, outsourcing, unexpected events. I plan to save my rebate," she said.
Don is "holding on to his check for dear life." Don doesn't think the check is enough to spend on non-necessities. "I'm afraid that as the cost of necessities like food and gas continue to rise, I will fall upon rough times," he said.
