Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

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.

Subscribe to Economy
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

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

Photo Galleries
Banned! 10 things you won't find in China China says it wants to open its economy more to the rest of the world, but Beijing keeps a tight grip on technology and access to media. These 10 items are still off limits. More
A morning at the AltSchool, an education startup that Silicon Valley is crazy about The AltSchool is a system of "micro schools" and an education software maker that has raised about $133 million from investors like Andreessen Horowitz and Mark Zuckerberg and Priscilla Chan's philanthropic fund. More
Coolest cars for $18,000 These are the best budget cars, according to the experts at Kelley Blue Book. More