Editor’s note: The headline on this story was clarified to reflect the rebates as a proposal that has yet to be passed.
Many MSU students may never reap the benefit of proposed rebates in an economic stimulus package that would potentially give consumers $300 to $1200 in tax refunds.
The tax refund agreement was reached between Congress and the White House, according to The Associated Press. The plan would give individual taxpayers up to $600, while families would receive $1,200 and an additional $300 per child. Rebates of $300 would go to workers who make at least $3,000 but don’t pay taxes.
The rebates would be issued from May to July.
If someone is listed as a dependent by a parent, the rebate is normally denied, said Norman Wise, a certified public accountant for Wise & Associates, 1600 Abbot Road.
Kate Davis, a child development senior, said many of students who are claimed as dependents still need the rebates.
“(The students) are already in debt because they’re in school,” Davis said. “If anyone needs it, it’s probably them.”
Mark Reffitt, an economic analyst for the Michigan Department of Labor and Economic Growth, said he’s not sure how this agreement will affect the state economy.
“I don’t know if it will have big enough impact locally to see a difference,” Reffitt said.
Economics professor Charles Ballard said the symbolic value of the move is important.
“Congressional leaders and the president want to ensure people they are dealing with the problem,” Ballard said.
He said the idea of the stimulus program is to generate consumer spending, which would put money into the economy.
“That obviously is going to be a nice thing for people to spend that money,” Ballard said. “It’s hard to tell if it’s going to affect the national economy.”
Tom Scott, senior vice president for the Michigan Retailers Association, said the stimulus package is a welcome boost to Michigan’s economy, especially after slow holiday spending.
“If they put money in the consumer’s hand and they go out and spend it in retail, it can only help,” Scott said.
While Eric Merckling, owner of Scavenger Hunt Vintage Clothing, 503 E. Grand River Ave., is skeptical of how much a refund of a few hundred dollars would help him, he is looking forward to a quick economic boost.
“We’ll probably see a little extra business that week, but I don’t think that will help the country,” Merckling said.
The Associated Press contributed to this report.
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