Congress, facing the prospect of an election-year recession, has passed an emergency plan that rushes rebates of $600 to $1,200 to most taxpayers and $300 checks to disabled veterans, the elderly and other low-income people (see related story). President Bush has indicated he would sign the measure.
KYW's Lynne Adkins talked with a local economist about the economic stimulus package and its expected effects.
The good news, says Jeremy Siegel (right), professor of finance at the University of Pennsylvania's Wharton School, is that the money is yours -- Uncle Sam won't be dipping into the checks:
"All the indication I have is, this will not be taxed. It'll be an outright grant by the government. That is good -- we won't have to worry about taxes on this income."
Siegel says the checks are generous, ranging from $300 to $1,200, and will help jumpstart the economy.
But he says the checks coming in May might be too late to help the economy:
"They're scheduled for very late this spring and summer, while we really need the stimulus now, while the economy is slowing quite significantly."
He also reminds us that the rebates will just add to the government's deficit -- and we'll end up paying for that at a later date.
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