Rebate checks began hitting bank accounts last week and will be arriving
in mailboxes with the hope that they will stimulate the economy.
Americans, however, are split on whether they actually will do so. Just
under half (48%) of U.S. adults do not believe that spending their tax
rebates will help stimulate the economy while 45 percent believe that
the checks will stimulate the economy.
These are some of the results of a nationwide Harris
Poll of 2,529 U.S. adults surveyed online between April 7 and 15,
2008 by Harris Interactive®.
There is also a political difference in what Americans believe with
regard to the rebate checks. Perhaps not surprisingly, Republicans are
more likely than Democrats to think these checks will provide an
economic stimulus (62% versus 36%). Independents, however, lean a bit
more towards the Democrats on this issue as half of Independents say the
checks will not stimulate the economy while two in five (42%) believe
they will. While a 53 percent majority of Conservatives also believe
these checks will help stimulate the economy, this number is a lot lower
than it is for Republicans.
Almost three-quarters of Americans (73%) believe they will be getting
checks, while 14 percent say they do not anticipate receiving one and 13
percent are not sure. Those with household incomes between $35,000
$49,999 and $50,000 - $74,999 are the income groups who are most likely
to believe they will receive these rebates (81% and 85% respectively).
How the Checks will be Spent
While the government hopes that the checks will be spent to spur the
economy, the reality may be quite different. Almost two in five (38%)
say they will use some of the rebate checks to reduce their non-mortgage
debt and paying off bills or credit cards followed by 35 percent who are
going to add some of the rebate to their cash savings. In fact, 21
percent of those getting checks will be using somewhere between
three-quarters and the entire rebate amount towards reducing debt. One
in five of those who are getting checks say they will use some of their
rebate for other things they have wanted to buy (21%) and taking a trip
for leisure purposes (20%). Further down the list are spending on home
improvements (17%) and going to restaurants or dining out (16%).
One in ten or less of those getting checks say they will spend part of
their rebate check on: technology devices, such as a computer or TV
(10%); entertainment events or devices (10%); donating to charity (8%);
education for themselves or their family (6%); paying down mortgages
(5%); investing in stocks or mutual funds (4%); and indulging in a spa
treatment (2%).
So What?
As it stands now, much of the rebates will end up deposited in savings
or being mailed to credit card issuers. But, with retailers ramping up
advertising geared towards helping Americans to spend these rebate
checks, some of the best intentions of saving or paying off debt may
change. If it does, that might help jump start the economy. By the end
of the summer, what Americans do with these checks will be clear and we’ll
see where we stand then.
Methodology
This Harris Poll® was
conducted online within the United States between April 7 and 15, 2008,
among 2,529 adults (aged 18 and over). Figures for age, sex, race,
education, region and household income were weighted where necessary to
bring them into line with their actual proportions in the population.
Propensity score weighting was also used to adjust for respondents’
propensity to be online. Because the sample is based on those who agreed
to participate in the Harris Interactive panel, no estimates of
theoretical sampling error can be calculated. A full methodology and
data tables will be made available at www.harrisinteractive.com.
These statements conform to the principles of disclosure of the
National Council on Public Polls.
J33558
Q615, 620, 625
About Harris Interactive
Harris Interactive is a
global leader in custom market research. With a long and rich history in
multimodal research, powered by our science and technology, we assist
clients in achieving business results. Harris Interactive serves clients
globally through our North American, European and Asian offices and a
network of independent market research firms. For more information,
please visit www.harrisinteractive.com.
Harris Interactive Inc. 5/08
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