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The check's in the mail...
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July 20, 2001: 2:45 p.m. ET
What some financial leaders plan to do with their tax rebate checks
By Bettina Teodoro
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NEW YORK (CNNfn) - The moment many Americans have been waiting for is finally here.
Starting next week, taxpayers will begin to receive the first installment of President Bush's 10-year, $1.35 trillion tax cut in the form of tax refund checks of up to $300 for a single taxpayer, $500 for a head of household, and $600 for a married couple filing jointly.
President Bush hopes taxpayers will spend their refunds, in order to give a swift kick to the laggard economy.
Christine Callies, chief U.S. investment strategist with Merrill Lynch, said she believes consumers who are planning to spend their refunds will put the money first toward home improvement, followed by electronics, entertainment and recreational equipment.
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Treasury Secretary Paul O'Neill is donating his tax refund to charity. | |
Some taxpayers also may consider big-ticket durables such as cars and boats but, Callies said, "This is only under the assumption that the full tax rate cuts go into effect."
On the other hand, some people may be inclined to bank their refund, or put it to work by paying off debt or contributing it to a qualified retirement plan.
And others, including Treasury Secretary Paul O'Neill – the Cabinet member responsible for the tax rebates – will be giving the money to charity. A spokeswoman for the Treasury Department said Secretary O'Neill plans to sign over his check to the Western Pennsylvania School for the Blind.
In case you are looking for some guidance as to what do with your refund, CNNfn.com asked some leading members of the financial and investment communities what they plan to do with their money. Here is what they said:
The spenders
-- Marshall Acuff, equity strategist, Salomon Smith Barney – "I think it's already been spent. I think there was a sale on golf clubs recently and I already spent it."
-- Barry Hyman, chief investment officer, Ehrenkrantz King Nussbaum – "Since I filed an extension and probably will be late getting it, I will probably just go spend it. Nothing special, I would just say probably some jewelry for my spouse."
-- Jim Glassman, senior U.S. economist, J.P. Morgan – "I filed an extension, so I won't get it right away. But it will go right into the spending pot." Glassman said he has nothing particular in mind, but added he "will probably spend it four times over."
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Maria Ramirez | |
-- Maria Ramirez, international economist, president and CEO of Maria Fiorini Ramirez Inc. – Ramirez conducted an informal survey of her staff, which revealed 50 percent will use the money to pay down debt. One staffer said she will use the money to pay her taxes, effectively returning her check back to its sender, and 50 percent will buy durable goods. "As for myself," Ramirez said, "I will probably buy something for my kitchen that needs repair, like my oven."
-- Dates Fryberger, analyst, Jefferies & Co. – "A new set of golf clubs."
-- Mark Donahoe, institutional equity sales trader with U.S. Bancorp Piper Jaffray – "Since we're going on vacation pretty soon, I'm sure we'll spend it on our vacation."
The savers
-- Wayne Angell, chief economist with Bear Stearns and former member of the Federal Reserve Board of Governors – "For me, the tax refund amount will not alter any spending plans. It will mean an increase in savings."
-- Maureen Allyn, chief economist with Zurich Scudder Investments – "I don't have any plans – I guess it will just go into my checking account."
-- Robert Brusca, chief economist with Ecobest Consulting – "I have no plans to do anything with it – probably put it in the bank. I'm not going to change my spending habits."
The benefactors
-- Paul O'Neill, Secretary of the Treasury – a donation to the Western Pennsylvania School for the Blind
-- Grace Fey, executive vice-president, Frontier Capital Management – "I am giving it to charity – to the zoo." Fey is chairwoman of Zoo New England, a non-profit organization that operates the Franklin Park Zoo in Boston and the Stone Zoo in Stoneham, Mass.
-- Jordan Kimmel, president, Magnet Investment Group – "We plan on donating it to our local school [which his children attend] to buy a computer." 
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