Oct 11, 2008 10:01 pm US/Central
Could Another Tax Rebate Help The Economy?
CHICAGO (CBS) ―
Lawmakers now want a second economic stimulus package. It could mean another tax rebate, but will it really help fix the economy?
Democratic leaders say they might call Congress back to work after the presidential election to pass the new package.
Besides a possible rebate -- it could include more jobless benefits and money for food stamps. But it comes with a high price tag -- at a time when the federal government has already laid out hundreds of billions of dollars in bailouts.
CBS 2's Pamela Jones has been talking to taxpayers about the plan.
That's just the question people on the streets of Chicago were asking Saturday: how will all this help be paid for?
But at the same time, they say their dollars just aren't buying as much right now, and they'll take all the help they can get.
Michigan Avenue was packed with people looking for deals Saturday. Some spent the rebate checks they got earlier this year.
Robert Paszkiet said he used his $600 stimulus check for part of his new flat screen TV.
Holly Brown spent hers on shopping, shoes and purses.
It's what lawmakers intended -- helping some 128 million households use their buying power to kick the economy into gear.
But some economists say early numbers show most people saved that extra money instead.
And families CBS 2 talked to say that's a good idea if they were to get another stimulus check.
"I'll probably make one months mortgage payment or part of one month's mortgage payment," said Paszkiet.
"I would probably be a little more thrifty and saving this time around,'" Brown said.
House Democrats have not promised another round of rebates in their ideas for a new stimulus plan. But House Speaker Nancy Pelosi says the legislation would steer $150 billion toward projects like bridge repairs, road improvements and other programs to create jobs and turn the economy around. And a direct rebate could be part of the package.
"I think it's good that they're going to pass money back to people that probably really need it really bad right now," said taxpayer Kathy Jeffery. "Whether it's because of gasoline prices or everything from food prices and bus fare."
Still some shoppers CBS 2 talked to want to hear more details about the plan and some assurances that this one will work.
Pelosi says House Democratic leaders will meet Monday for an economic forum with some expert economists to help guide them.
(© MMIX, CBS Broadcasting Inc. All Rights Reserved.)
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