Sky News business presenter Emma Crosby
Millions of Americans will be $600 (about £300) richer this week as the first cheques in a 120 billion dollar tax rebate scheme start arriving through their letterboxes. Its hoped the cash will encourage around 130 million American households to spend their way out of economic trouble.
Speaking on the economic slowdown, President Bush said “This money is going to help Americans offset the high prices we’re seeing at the gas pump and at the grocery store and it will also give our economy a boost to help pull out of this economic slowdown.”
Backers of the plan say this’ll act as a bridge until the next US interest rate cut. Julia Coronado, senior economist at Barclays Capital says "It's such a huge number that even a third of it will have an impact on retail expenditure," with others expecting a “multiplier effect” with every 1 dollar spent creating a 2 to 4 dollar benefit to the US economy, especially if it’s spent on domestic goods and services.
There are concerns though that people could just put the cheques into their bank accounts instead and save for a rainy day. Others fear that it does little to address the fundamental problems in the housing and job market. And wasn’t it over zealous consumer spending that got the US into this difficulty in the first place?
Something similar is unlikely to happen in this country as the UK government quite simply doesn’t have enough cash. But if you were on the receiving end of say a £300 cheque from HM Inland Revenue, what would you do with it? Spend, save or clear debts? Let us know…
Oh good grief talk about clutching at straws and bolting the door after the horse has bolted. For goodness sake when is someone going to realise what is happening to our way of life. What on earth is $600 going to do when homeowners in america have been plunged into negitive equity and massive debt. $600 will do absolutely nothing to help. Please realise that there is a very sinister tone to all of this. People have been made captives of the system by taking on huge debts with no chance of paying it back. The state is controlling them. There is something very nasty about to happen. Is there anybody out there that can see what I can see? If so please let me know before its too late. A disaster is coming and its coming very fast now.
Posted by: pete brighton 29 Apr 2008 17:43:28
I would donate it to a fund to offer some compensation to the 100 thousand plus small, very small people(pensioners in the main)who have had their entire shareholding in Northern Rock robbed - shares they were leaving aside just to aid their children & grandchildren through the future. Over £6,000 each at the very least.
These 'little', ordinary, nice, very nice people - who wouldn't know a Collaterised Loan Obligation from a bottle of milk - have been entirely and savagely sacrificed in the murky dealings of the Government versus the City red braces brigades.
And to cap it all, the 'grand theft non-auto' has been quickly followed by Mr Turpin & Co hurriedly passing a law which may well ensure that these poor folk are 'compensated' to the tune of only £25 each (if that) for having their £6,000 property snatched from them.
So, they can can have my 'tax rebate' money, gladly.
Posted by: Dennis, Cramlington Northumberland 29 Apr 2008 08:36:14
If I was to announce to my Wife that this tax guzzling Government had just posted us a £300 rebate, she would immediately phone my G.P to inform him I was in "non-compliance" with my meds again.
Posted by: Robert, Scotland 28 Apr 2008 19:42:09
Well, would you adam and eve the timing of such repayment cheques as many a revenue generator preapres for a fireworks spectacular [Underneath The Sky]
After lubricating the stomach lining with an [Oasis] or two, and having further paid for my mobile broadband as adduced at http://www.sky.com/broadband, I will no doubt enjoy the best of British Sky Broadcasting, interacting by pressing the red button on my new found digital remote control on the Sky platform, whils I think of further ways in which to charge the banks with responsible lending.
But you see, luckily in the UK we are seldom put through such a financial crisis in the way of rebates, as the term 'give' not often appears within many a political dictionary, so' I'll await the cheque and let you know. By the way, it had better not bounce! Couldn't they have done a BACS transfer to start the good times rolling sooner?
Posted by: Khalid 28 Apr 2008 19:27:47
I think I'd keep it in the bank as a reserve against the NEXT increase in some essential that is no doubt just around the corner.
Posted by: Steve in Telford 28 Apr 2008 16:32:15
A stark reminder of our own Govt's lack of room for manoeuvre.
That said, £300 would make little impact on just one month's mortgage instalment for many Britons.
The current debt bubble will take many moons to clear. Lower taxes is only part of the answer.
Responsible lending, stable house prices and a lid on poulation growth would help too.
The UK economy has specific structural problems, exaggerated by, but not caused by, the credit crunch.
It took 11 years to get us here. It may take that long to get us back on track again.
Posted by: Bill, Middle England 28 Apr 2008 15:24:35
The UK government are set to close small businesses by increasing fuel etc. If fuel gets anymore expensive then I will have to close the business down as I am at the moment working for fuel.
£300 rebate wouldn't be any use, reduce the fuel please.
Posted by: Clark's Pet Couriers & Pet Sitters, Derbyshire 28 Apr 2008 15:18:03
like to think i'd blow it
Posted by: Michael Cornwall 28 Apr 2008 14:27:11