ECONOMY:
 

Study: Rebates to be applied to debts

Consumer survey says that many Americans would use tax rebate funds from a Washington stimulus package to help repay what they owe.

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Rebates: 'No boost to economy'
The stimulus plan is supposed to help the U.S. economy, but many plan on spending it in ways that would send the money overseas.

NEW YORK (CNNMoney.com) -- Americans who would receive a tax rebate under Washington's proposed economic stimulus legislation are most likely to use their rebate money to pay down debt, according to a consumer survey.

The UBS Securities-commissioned survey released by the International Council of Shopping Centers, Inc. found that 43% of the 1,000 surveyed Americans would pay off debt, while 26% said they would save the money and only 24% said they would spend it.

"Consumers see this tax rebate program similar to earlier ones and will act in a similar fashion using the lion's share of the rebate money for debt relief," said Michael P. Niemira, chief economist and director of research for ICSC in a statement.

"But still, about $25 billion will head into the spending stream and that is positive for the economy," he added.

The proposed legislation would return $600 to tax-paying individuals that earn under $75,000 annually and $1,200 to couples who make less than $150,000 as part of an economic stimulus plan. To top of page

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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer.

Morningstar: © 2014 Morningstar, Inc. All Rights Reserved.

Factset: FactSet Research Systems Inc. 2014. All rights reserved.

Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved.

Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor’s Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2014 and/or its affiliates.