Last Updated:7:52 PM EST 2/13/08 Section: News

Fedoryshyn

Smoker

Want an extra $300?

In hopes of bettering the economy, the United States Congress passed an economic stimulus package on Feb. 7 that will give $168 billion in refund checks to 130 million Americans. In order to qualify, you must have made at least $3,000 and file a 1040 or 1040EZ federal tax return with the IRS for 2007. The checks will go out in May.

According to Reuters, President George W. Bush said that the plan "is robust, it is pro-growth, it stimulates business investment and it puts money into the hands of American consumers." As of press time, the bill hadn't been signed. Bush was expected to sign the bill on Feb. 13.

Most married couples will receive a $1,200 check with an additional $300 for each dependent under the age of 17. These dependents, even if they file separately, will not receive a rebate check. The rebate is meant for middle to lower class incomes and begins to phase out for single filers who make more than $75,000 or couples who make more than $150,000.

"As long as you made more than $3,000 and filed a tax return, you will be eligible," Accounting professor Michael Fedoryshyn said. "For students, I recommend they pay off credit card debt and save the rest for unexpected expenses."

According to the Federal Reserve, Americans owed a record $943.5 billion in credit card debt at the end of December. While the government is hoping that Americans will simply go out and spend the money, surveys have shown that the majority of people will use it to pay off debts.

"Some people are so far in debt that they don't care about it anymore, so if they get cash, they'll go out and spend it," Accounting Professor Kari Smoker said. "It makes people believe that if I'm getting money, things must be good, which isn't necessarily the case."

While receiving a check may seem nice, some are skeptical about how effective this plan will really prove to be.

"I'm happy about the idea, I qualify to get a $600 rebate, which I will probably use to pay rent over the summer," Senior Michael Weimer said. "But between inflations, the extreme rise in consumer goods, and lack of minimum wage keeping up with both of those, it will be hard for this rebate to really help at all."

With this rebate, it is most important to remember that in order to qualify to receive a check; you must file your taxes for 2007. Fedoryshyn advises students to meet with a tax adviser before making any decisions.

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