LaurieJim
Paleo Meister (means really, really old)
- Joined
- Jun 16, 2006
- Location
- In the Beautiful South !!
Bush's big gift to Wal-Mart
How are Americans likely to spend their tax rebates? Expect sellers of food and clothing, such as Wal-Mart, Kohl's and Target, to be the biggest beneficiaries.
Politicians know how to do one thing well: hand out money.
With a possible recession looming, politicos in Washington, D.C., are rushing through a tax-rebate package twice as big as any cash giveaway in the past four decades.
Which companies should expect a slice of this $100 billion pie? Though a $1,200 check may bring sellers of flat-screen TVs to mind, history shows most Americans are likely to spend the largest chunk on basics such as food and clothing.
That's good news for Wal-Mart Stores (WMT, news, msgs), the nation's largest retailer, and others like Target (TGT, news, msgs) and Kohl's (KSS, news, msgs).
Lower-end retailers like these, along with restaurants, could get a $66 billion revenue boost in the third and fourth quarters if past consumer behavior is any guide. Wal-Mart alone could see $4 billion to $5 billion from the rebates in just the third quarter.
The push is on
President Bush is pressing for fast action, but Congress still has to agree on a plan.
The key House plan would offer rebates of up to $600 for individuals and $1,200 for couples who filed tax returns jointly, plus $300 per child. The rebates would be phased out for individuals with adjusted gross incomes of more than $75,000 and couples with more than $150,000. The theory: People who earn less are more likely to spend it and help the economy.
The Senate's plan would offer somewhat less money, and the income cutoffs would be higher.
Checks could hit the mail by May or June. Consumers likely would spend more than half of the money in a couple of months on things like groceries, clothing and eating out. They would also probably catch up on delayed car repairs and pump some money into slot machines.................. know where mine is going
How are Americans likely to spend their tax rebates? Expect sellers of food and clothing, such as Wal-Mart, Kohl's and Target, to be the biggest beneficiaries.
Politicians know how to do one thing well: hand out money.
With a possible recession looming, politicos in Washington, D.C., are rushing through a tax-rebate package twice as big as any cash giveaway in the past four decades.
Which companies should expect a slice of this $100 billion pie? Though a $1,200 check may bring sellers of flat-screen TVs to mind, history shows most Americans are likely to spend the largest chunk on basics such as food and clothing.
That's good news for Wal-Mart Stores (WMT, news, msgs), the nation's largest retailer, and others like Target (TGT, news, msgs) and Kohl's (KSS, news, msgs).
Lower-end retailers like these, along with restaurants, could get a $66 billion revenue boost in the third and fourth quarters if past consumer behavior is any guide. Wal-Mart alone could see $4 billion to $5 billion from the rebates in just the third quarter.
The push is on
President Bush is pressing for fast action, but Congress still has to agree on a plan.
The key House plan would offer rebates of up to $600 for individuals and $1,200 for couples who filed tax returns jointly, plus $300 per child. The rebates would be phased out for individuals with adjusted gross incomes of more than $75,000 and couples with more than $150,000. The theory: People who earn less are more likely to spend it and help the economy.
The Senate's plan would offer somewhat less money, and the income cutoffs would be higher.
Checks could hit the mail by May or June. Consumers likely would spend more than half of the money in a couple of months on things like groceries, clothing and eating out. They would also probably catch up on delayed car repairs and pump some money into slot machines.................. know where mine is going
