Tax Rebates Come A Week Early

President Bush Says Checks Will Boost Slumping Economy, Emphasizing Food And Fuel Costs

(AP)  President Bush said tax rebates will start going out Monday, earlier than previously announced, and should help Americans cope with rising gasoline and food prices, as well as aid a slumping economy.

Democrats said they were glad the rebate checks were about to go out, but suggested that multinational oil companies were not among the businesses the stimulus package was originally designed to help.

"Starting Monday, the effects of the stimulus will begin to reach millions of households across our country," Bush said Friday in remarks on the South Lawn of the White House.

Those first rebates will be directly deposited into people's bank accounts. The Internal Revenue Service had been saying direct deposits wouldn't start until next Friday. Bush said paper checks would begin going out on May 9, a week earlier than previously announced.

"The money is going to help Americans offset the high prices we're seeing at the gas pump, the grocery store, and also give our economy a boost to help us pull out of this economic slowdown," Bush said.

Bush's emphasis on fuel and food prices differed from other comments he's made since signing the economic stimulus legislation, intended to aid the economy by boosting overall consumer spending - which accounts for roughly two-thirds of the nation's economic activity.

Bush has suggested the rebates could trigger a spending spree. "When the money reaches the American people, we expect they will use it to boost consumer spending," he said last month.

By saying expressly that people could use these one-time checks to pay for such necessities as food and gas, Bush underscored the deepening challenges facing the economy.

Democrats were quick to pick up on the change of focus.

"It's galling to think that taxpayers' stimulus checks will be lining the pockets of OPEC. The sad truth is that the average American family will spend almost their entire stimulus check on higher gas prices this year," said Sen. Charles Schumer, D-N.Y., chairman of the Joint Economic Committee of Congress.

OPEC is the Organization of Petroleum Exporting Countries.

"Unless the administration gets OPEC to increase oil supply, American consumers are going to be in for a scorching summer of $4 gasoline with no relief in sight," Schumer said.

House Speaker Nancy Pelosi, D-Calif., agreed that people "need this rebate to cope with the rising cost of gas and groceries." She said that, while the rebates would help to get the economy moving, there was a need for a second stimulus package "and we have begun some conversation with the administration and Republicans."

As he had earlier in the week, Bush used the word "slowdown" to describe the state of the economy. He has denied that the nation is in a recession, although many economists say it is.

"It's obvious our economy is in a slowdown. But, fortunately, we recognized the signs early and took action," Bush said.

The rebates - up to $600 for an individual, $1,200 for a couple and an additional $300 for each dependent child - are the centerpiece of the government's $168 billion stimulus package, enacted in February. Roughly 130 million households are expected to get them.

Bush made the comments before boarding his helicopter at the start of a day trip to Connecticut.

People must file a tax return for their 2007 income to be eligible for a rebate check.

The IRS now says all checks for those who filed tax returns on time are scheduled to be deposited or mailed by July 11.

The economy - burdened by the collapse of home prices, a financial and credit crisis, and now rising energy and food prices - grew at an anemic 0.6 percent in the final three months of last year and is believed to have gotten even weaker in the first three months of this year.

The government will report on the first quarter's performance next week.

With the economy faltering, the nation's unemployment rate has climbed to 5.1 percent, the highest since September 2005, when it suffered from the devastating blows of the Gulf Coast hurricanes. Job losses in the first three months of this year neared the quarter-million mark.

Foreclosures have surged to record highs and financial companies have taken multibillion losses on mortgage investments that soured. The situation has sent a tremor through Wall Street and has sent the administration, Congress and presidential contenders looking for ways to provide relief.

[dandeson]

This Tax Stimulus refund is a joke. I heard on the show yesterday the government wants us to put the money back into the economy and not use it to pay off bills. What a joke. If you have back taxes you are not going to see one penney of that money. Sure it goes towards your back taxes but what good does that do our economy.

[estabwary]

How is my tax rebate supposed to stimulate the economy when I have to spend it on health care costs?

If there were not so much WASTE in government,
we''d have universal healthcare & my rebate could be spent in the retail market.

This poor bandaid fix is a joke and cannot begin to scratch the surface to fix the "economy".

This is more like a tip we get for being compliant & not revolting like the French.

"Thank You for not being French",
signed, The GWB Gov.

[leftyintexas]

The only one who is going to benefit from this stimulus package is the oil company.

Posted by passerby2 at 11:32 AM : Apr 28, 2008

WELL STATED! You stole my ''thunder''! The OIL friends of DOOFUS and BUTTHEAD are the ONLY ones benefiting from this so-called ''rebate''. What a mess these two fools have left our country and the world in! Only 267 days left! Thank God!

[passerby2]

The only one who is going to benefit from this stimulus package is the oil company.

[rf35]

...Posted by kattyclayz

Unbeleivable. You must be in mighty good financial shape to make a comment like that. Maybe you''d be in even better shape (in every sense) if you''d have kept your legs closed instead of pushing out SIX KIDS! Oh wait, I forget, your getting $1800 extra for all those little consumers. Well, just like the crack mom who keeps getting knocked up for the welfare check, aren''t you. Sad.

[ov442]

......."It''s obvious our economy is in a slowdown. But, fortunately, we recognized the signs early and took action," Bush said .......

This guy was sayin up until about 6 weeks ago that our economy is strong, nothing to worry about, and we''re just experiencing a temporary bump during a great cycle of growth.

What media idiocy wont call him out on this? they have all the Bush-ism on video and in writing.

[bm6005]

I believe the correct term is "buying votes" for McSame. To those of you praising this, "It''s a frickin loan" you''ll pay back next year. Do you really think that you''ll be in better financial shape a year from now? Good to see all of our education dollars are still totally wasted. Think for yourselves people, your leaders(?) lie as usual!!

[ov442]

kattyclayz ?????? are you serious?
You are thanking Bush for announcing what Congress initiated and passed? you''ve got to be joking.
What cave do you live in that you have so little clue about who does what in our government?

[ov442]

talkingham you are totally right about the media and bush.

[talkingham]

More like 7.5 years late rather than a week early CBS lying dogs.

CBS and the rest of the corporate "press" have given the Bush White House carte blanche ever since 911. He is the worst US President in history.

[kattyclayz]

I am so thankful for this gas stimulus check. We are a family of six. What we plan on doing is only these few things. Get a cyst removed from my husband, and stock up on groceries & diapers. Maybe if we don''t have to drive to the grocery store every week, we can still afford to take the kids somewhere fun this summer.

I do hope that something will be done about these gas prices. That''s what''s killing our family. My husband drives on average 800 miles a week and at 3.55/gal, WOW! That''s all that I can say..

But really, thank you to the Bush admin. that I honestly thought couldn''t do much right. Glad they/he proved me wrong.

[quetzal0666]

i dont qualify for anytying anyways, and if i did,
well it wont be enough to pay but a few weeks of gas and groceries,

[momoffour96]

Did I miss President Idiot saying that you will only get the rebate for a maximum of two children? Funny how he can hide little pieces of information from the public...again!!! I know....it''s "money I wouldn''t have had to begin with", but does he really think that a family of six is going to run out and buy stuff?? Try GAS to get to work to support our family of six!!

[niecieg]

I always read these comments and never respond. But i just wonder why so many people are complaining about getting this money knowing good and well they are going to spend it just like any other person receiving the money. Me, i am going to use the money to move. There''s always got to be people finding something to complain about. "we are giving you hundreds of dollars" complainer says back "why are you giving me money?? we dont want money from you bush!" so stupid...you BUSH HATERS NEED TO GET A LIFE. if you spent as much time making your life right as you do hating on Bush then you might not be complaining on message boards you''d actually be out having a normal life.

[navyjimfl]

Bush knows if he throws the great unwashed a few bucks for more cigs beer and lottery tickets....they will be happy....

[stupidrules3]

I guess the politicians have to look like they are doing something so they throw us a bone by giving us a liitle bit of our own money back. This will do very little to ease the problems in our economy. I will be glad to get my money back but I am not willing to sing the praises of Congress for this pitiful attempt to save face.

[baltbullet1]

This tax rebate is nothing more than a *** in the wind.
What a joke!

[trojanny]

mellawilk, I''m a big fan of Clinton, but you''re right about economies not necessarily presidential faults. Clinton did a lot of great things, but is HE really the reason things went well. Pres. Carter kept Clinton out of a war by being in the right place negotiating, as he so well does.

"The Depression?" I forget his name, but the previous president saw it coming, which is why he didn''t run for re-election.

"The Wall" was ALREADY being torn down, when Reagan said "Mr. Gorbachev, tear down ....." (Gorbachev was probably going to unite Germany anyway!!

[mellawilk]

I really wish people would get educated before they start giving financial or political advice. By the way, there is a difference between what a President spends while in office and that state of the economy.
I also said that Clinton was taking credit for the economy he had nothing to do with enhancing. Good or bad, it is always the previous administration that caused it. I am not choosing sides, you are. I repeat, how long would it take you to fix you economic problems? As I said before, years!

[besttyper]

mellawilk, so when the economy is bad, we should blame the previous administration? Shame on Carter for spending $1000 on a toilet seat and $750 for a hammer! Come on GW, trickle it down like Reagan did...my head is not quite wet enough with pee to qualify as waterboarding!!