Just 21 percent of Americans say they'll spend their tax rebates. (ABCNEWS.com)
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Bush has said the rebates — in the form of checks worth $300 to $600 that are set to begin arriving in mailboxes this summer — are necessary to stimulate the economy. But a stimulus depends on taxpayers spending the windfall, and a new ABCNEWS/Washington Post poll finds that relatively few intend to do so.
Twenty-one percent say they'll spend their rebates, which is defined here as making new purchases. Another 6 percent say they'll spend some and save some. By contrast, 34 percent say they'll use it to pay bills and other debts, and 30 percent say they'll save or invest their rebates.
Spending Plans Linked to Income
The rebates are estimated to return about $50 billion to taxpayers. Supporters of the move say it should boost the sluggish economy, while critics say the stimulus won't be large enough to make much difference.
|  Readers share their views
Higher-income Americans are far more likely to spend their refunds, according to the survey. Middle- and lower-income taxpayers are more apt to use the money to pay bills. Men are more likely than women to spend their rebates. But majorities across all demographic groups plan to do something with the money other than spend it on new purchases.
Will Spend the Rebate |
| Earn Less Than $20,000 |
15 percent |
| Earn More Than $75,000 |
32 percent |
| Men |
26 percent |
| Women |
17 percent | | |
Americans give Bush a 58 percent approval rating for his work on tax cuts, and trust him more than the Democrats in Congress to handle the issue, albeit by a slim margin. At the same time, 54 percent think the tax cut will disproportionately benefit the wealthy, and Americans by a 2-to-1 margin say they'd have preferred to have the tax-cut money spent on popular social programs.
Nor is the tax cut widely seen as an economic panacea. About one-third of Americans think it will be good for the economy, while 50 percent think it won't make much difference.
Methodology
This ABCNEWS/Washington Post poll was conducted by telephone May 31-June 3 via a random national sample of 1,004 adults. The results have a three-point error margin. Field work was done by TNS Intersearch of Horsham, Pa
Previous ABCNEWS polls can be found in our
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