With President Bush signing a multibillion-dollar economic rescue package last Wednesday many Americans households will see $300 to $1,200 rebate checks in their mail boxes as early as May.

This rebate is meant give the American people extra money to spend and get the economy flowing again.

“What people have to realize is recession is normal and they tend to be very short,” said Edward Jones Financial Advisor Steve Elder.

“If people spend the money on items like washing machines and plasma TVs then the rebate will jump-start the economy.

But if people pay bills and put the money in a savings account then the rebate will not get the money moving again.

“What the government hopes will happen with this rebate is that consumers will buy things and companies will then have to replace the items and need to hire new workers,” added Elder.

“I plan to use the money to go on vacation,” said Grayson County News-Gazette's own sports reporter Don Brown. “I am going to use the rebate check and combine it with some of my refund and maybe go up the east coast.”

Sandy England had no plans for the rebate,”I am not sure what we will do with it. I was not counting on getting it.”

“I am buying a house and can find plenty to spend the money on,” said Clarkson resident Todd Hart.

The Internal Revenue Service advised taxpayers that in most cases they will not have to do anything extra this year to get the economic stimulus payments.

“If you are eligible for a payment, all you have to do is file a 2007 tax return and the IRS will do the rest,” said Acting IRS Commissioner Linda Stiff.

The information on the 2007 tax forms will be used to determine the amount of rebate each taxpayer will receive.

Most individuals will receive a check for up to $600 and couples will receive $1,200, with an additional $300 per child.

Some individuals who have no tax liability may also be eligible for the rebate.

Low income workers and those receiving Social Security benefits or veterans' disability compensation, pension or survivors' benefits received from the Department of Veterans Affairs that have an income of up to $3000 may be eligible for $300 or more.

People who earn at least $3,000 and those who owe little or no taxes would get $300 for singles, $600 for couples.

Those making more than $75,000 and couples with income exceeding $150,000 are to get smaller rebates - $50 less per $1,000 of income.

Taxpayers who have already filed with direct deposit won't need to do anything else to receive the stimulus payment. The rebate check will be deposited into the same account the tax refund went to.

A little less than 30 percent of the funds involved in the stimulus package will go to businesses.

These businesses will get tax breaks for investing in new plants and equipment.

Reporter

tdunn@gcnnewsgazette.com