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Stimulus checks trickle in, but many consumers remain cautious

Wednesday, June 4, 2008 11:57 PM PDT

By Erik Olson

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Alex Kamaunu’s federal economic stimulus check is coming just in time to help pay for the flight to California with his wife and infant daughter for a family reunion. And it’s allowed him to splurge for a second trip in August.

“We set it aside for a travel budget,” said Kamaunu, the executive director of the Family Finance Resource Center in Longview.

Backers of a $110 billion economic stimulus plan are hoping a lot of taxpayers act like Kamaunu and spend rebate checks on vacations, computers or other durable goods to give the sluggish national economy a boost. But, with checks coming at a time of record-high food and gas prices, economists expect consumers to be cautious with the money.

About 131 million households are getting rebate checks under the program, which Congress approved and President Bush signed this spring. A fresh slug of rebates is hitting mailboxes and checking accounts this week.

Single taxpayers are receiving $600 checks, while married couples get $1,200 plus an additional $300 for each eligible child under 17. People earning too little to pay taxes but more than $3,000 are getting $300 per individual and $600 per couple.

Taxpayers with direct deposit received their money first last month, while others are receiving checks in the mail through the middle of the summer.

In Washington, the stimulus checks are expected to generate about $3 billion in spendable income, which could boost state and local tax rolls by about $87 million, according to the Washington Department of Revenue.

However, those dollars won’t flow immediately into the economy. Within a year, consumers are expected to spend half of their rebate checks on clothes, electronic goods, travel and down payments on larger items such as cars, said Bret Bertolin, a state senior economic forecaster.

The rest of the money likely will go into savings or pay off debt, Bertolin said.

Nationwide, the rebates should fuel a rise in consumer spending by the end of the summer, but retailers may still find themselves facing losses for the year because of the sluggish economy, Bertolin said.

“Consumer spending has been very weak,” he said.

Regardless, some local retailers are hoping to capitalize on the stimulus checks. For example, the Sears store at the Three Rivers Mall in Kelso is offering an additional 10 percent gift card to shoppers who cash rebate checks for Sears goods.

But for other retailers, record gas prices are the driving force in sales, forcing shoppers to buy local or invest in alternative transportation. The impact of the stimulus plan for many retailers remains unknown.

The Kelso Target store hasn’t seen any recent bump in sales, and no advertising is planned around the stimulus checks this summer, said Julie Bjorge, a Target executive in Kelso.

In fact, high gas prices might be a bigger selling point than the stimulus checks, she said.

“We’re hoping that they’re keeping it local,” Bjorge said.

Bob Schlecht, owner of Bob’s Sporting Goods in Longview, said he might offer unadvertised sales in anticipation of shoppers looking to spend stimulus checks.

Bicycle parts and repair are a hot item this year, and big-ticket camping gear for the summer season should sell well, he said.

But Schlecht said he’s not sure the rebate checks will provide an economic stimulus for his business.

“We’ll see it when it happens,” Schlecht said.

For 34-year-old Christian Berger, who commutes to Longview daily from Chehalis, the stimulus check is the first step in replacing his gas-guzzling Ford F-150 pickup truck.

Berger’s family will receive $1,500 from the government, and about $1,000 will go to a down payment on a different vehicle. The rest will be spent another day, he said.

“We’ve been talking seriously about applying the money to some savings,” Berger said.

That’s what Kamaunu is telling many of the 160 clients he counsels on money management. Others set aside the money to catch up on monthly payments of debts, he said.

“They are using the stimulus checks if they are behind on a mortgage,” Kamaunu said.

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feistyone wrote on Jun 5, 2008 4:40 AM:

" Whoopee. I don't know what Bush thinks this little dab of money is going to do for the economy. The continuous rise in gas and diesel prices are affecting everyting we buy. Depending on what type of vehicle you have it may fill your tank a few times. "

bones wrote on Jun 5, 2008 7:00 AM:

" I think most people,like us, will be using this money to either put away or pay off debt. Because of the rise in everything, I don't want to spend mine on material things. Maybe if they'd do something about the rise in gas prices and food etc. people would be likely to use their checks for what they had hoped. "

kalamafam wrote on Jun 5, 2008 8:00 AM:

" We spent ours on 2 tanks of gas, and paid bills that seem to be getting higher each month "

Tempest wrote on Jun 5, 2008 10:36 AM:

" When I asked my friends what they would be doing with any money they might get, they all said one of 3 things: paying towards a debt (usually a credit card), saving it (for college or a nest egg), or staving off additional debt by trying to get ahead with an extra mortgage or car payment ('Well heck! At this rate, we might be living in our cars soon!'). And I did not spend mine on consumer products, either. Eight years late and NOW $9,398,201,882,221.62 (as of 05 Jun 2008) dollars short. "

TDN Bad Boy wrote on Jun 5, 2008 11:50 AM:

" If all you can do is gripe and moan, how about doing the right thing? Return your money to the federal government. Don't be a hypocrit and complain, complain. Have the backbone to show your convictions. And I have news for you: If the racist Obama wins in November get ready for the biggest tax increase in U.S. history, an increase that will be felt throughout the working middle class. Clinton and the Democratic Congress did exactly that in 1992 in his first 100 days. Racist Obama will have to do the same to pay for his BIG GOVERNMENT social spending programs. And if you think he's suddenly going to wave a wand and high prices will disappear -- guess what ... WRONG. The Democrats will do less to produce U.S. fuel, thus increasing our reliance on foreign oil. They have big plans for bio-fuels which means higher food prices because of crops going for fuel and not food. And you can bet that the next civil war in Africa will bring the call from the racist Obama to send U.S. troops so the defense budget will continue and he will NOT bring troops home like he says. If he pulls U.S. troops out of the Middle East all he does is create an opportunity for extreme radical Muslim chaos. Oh that's rights the Racist Obama supports the extreme radical Muslims, so who knows, maybe he will decide to attack Israel. "

JuniorBaconChi wrote on Jun 5, 2008 12:48 PM:

" This check came about a year too late for me. I am so behind on bills that my entire check will be going towards them. "

Louie wrote on Jun 5, 2008 12:51 PM:

" I wonder how many angry people there will be when their 'stimulus check' is not for the $600 mentioned. This figure is obviously subject to adjustments. I worked for 44 years and paid taxes every one of those years and my check is not going to be $600. I think the key word was we would be receiving "up to" $600.
I am not too happy about the reduction in my check and really don't know why. Anybody else know? I have been retired for several years but still file my taxes yearly. "

IWCJ wrote on Jun 5, 2008 12:58 PM:

" We're going to Canada for 4 days to stimulate *their* economy. "

Louie wrote on Jun 5, 2008 1:05 PM:

" I went to the Government website for stimulus checks and it showed me the questions for figuring out my rebate but it doesnt mention why it is not the full $600...close but not $600 total. "

stink wrote on Jun 5, 2008 2:07 PM:

" those of you who aren't getting the full $600, did you pay extra taxes or did you get a return this year?
Not that it really matters, just curious. "

cheerio wrote on Jun 5, 2008 2:36 PM:

" When first having heard of the stimulas check our plans were to use it for are summer vacation. I will now be filling up my gas tank, buying some groceries and paying off bills. Can't wait to tell the kids that are vacation will consist of pitching a tent in the backyard. Oh well at least i'll be able to sleep a little more peacefully for awhile. "

country gal wrote on Jun 5, 2008 3:49 PM:

" I'm not sure what you're talking about Louie. Have you got your check yet? If not, according to the article, if you filed in an income tax form last year, you should get $600 if you're single or $1200 if you're married. My nephew already got his. "

momto1 wrote on Jun 5, 2008 5:59 PM:

" The ones that are complaining about not getting $600 are you on SS or SSI? People on those only got $300 per person. Fair huh? Of course my husbands and mine went to pay back child support in a different state, which isn't fair to me or my son, it isn't our bill. "

viper wrote on Jun 5, 2008 9:07 PM:

" enjoy them checks and please remember to file them on your next returns . as it is income , gotta love it ! "

cheney119 wrote on Jun 5, 2008 10:17 PM:

" Lovely TDN Bad Boy! Do you think anybody cares about your diatribe? I get to you're first Obama racist and stop reading. What was your point? If our government were smart they would have spent the money on something useful, like roads or schools or housing. At least we'd have had something to show for it. But I'll spend my on bills. Dah! "

Kalama Dude wrote on Jun 6, 2008 7:57 AM:

" We did our part, bought a dishwasher, nice microwave, clothes for all, fuel for great summer vacation and because they contributed to the size of the check in some way, gave the kids $50 each to use however they wanted. IF McCain can recreate that joy, then he has my vote. Taxes bad, rebates great!!! "

Absolutist wrote on Jun 6, 2008 11:14 AM:

" It's not an economic stimulous . . . it's an economic ridiculous check. What annoys me is that the government can take and take and take taxes, but the knuckleheads in government think they're doing me and the economy a favor by cutting me some dough they never should have robbed in the first place.

I know where my economic ridiculous check is going . . . right in a gas tank. And, if knucklehead politicians believe they can afford to give me back MY DOUGH this year, they could have REFRAINED from taking it in years prior. Thank a liberal and dopey conservatives who can't refrain from spending our money and who refuse to see a tax they don't like. CUT TAXES and get Uncle Sam's hands out of my pockets!

Less taxes means more money for the government and all those social programs it wants. The government doesn't know what to do with all the dough it acquires when it cuts taxes!!

Give me my money now! All of it. Including my Social Security dough . . . I can make a ton of money with the funds they rob from me every payday.

Rant over. "

Stella wrote on Jun 6, 2008 11:56 AM:

" Viper - this is not taxable income for this year. I received a notice stating that right after I received my deposit. "

TDN Bad Boy wrote on Jun 6, 2008 12:31 PM:

" Re: Absolutist. I couldn't agree with you more. The state government and the federal government has both hands in our pockets stealing our money. Da Tax Queen Gregoire is sitting on a big surplus but instead of giving us a break by lowering an astronomical gas tax, she keeps it high and tries to think of other taxes she and her Liberal Democrat tax-and-spend thieves can force upon us. Have to wonder how people in this state can be so dumb and listen to puppet residents like Cheney who love big government. Big Government means big taxes and you are a fool when they say they will only tax the rich. Every tax the Liberal Democrats impose (remember they have owned this state for 30 years and made the laws)is felt by ALL no matter how many times they lie to you. As for the Federal Government, President Bush ran on a tax cut promise in 2000 and he kept it. He has not asked for one tax increase in 8 years. Yes we are spending on Defense. I would rather do that than spend on Welfare programs the Liberal Democrats want. Now in this election, Racist Obama refuses to take a no-tax pledge, signalling tax increase plans. Clinton did it in 1992, Racist Obama if elected will do it 2009. His refusal to support a gas-tax holiday should be your first clue. He has no intention of lowering or elminating taxes. He wants what's in your wallet. "

Kalama Dude wrote on Jun 6, 2008 12:39 PM:

" Yep Viper this rebate will not be an issue with next years taxes. You need to check some facts before you make errors like this. "

Absolutist wrote on Jun 6, 2008 7:51 PM:

" Tax tax tax tax. The word alone to many people doesn't have the effect it should. The government is robbing us blind, yet there's little resistance.

I refuse to vote for anyone who won't vow to cut taxes cut taxes cut taxes. All I'm begging for is for thieves to get their hands out of my pockets and away from my future. If the government would get their hands off my own hard earned money and stop redistributing it to people, programs, and projects, I could not only retire 20 years earlier, but I'd have more than enough funds to contribute to worthy causes that I can't espicially afford today.

Every April 15 I grow more and more libertarian.

Cut taxes cut taxes cut taxes. Government coffers OVERFLOW with money when taxes are cut! That's a fact. "

The Grateful Dad wrote on Jun 6, 2008 10:06 PM:

" I am disabled, and on a very limited income. My wife was injured last year in a car accident, and was not able to work for six months last year. Because of our extremely low income, we are not even eligible for a "stimulus" check. It's pretty sad when you work your entire life, end up in a situation like we have found ourselves in, and cannot even get the help of a stimulus check from the IRS when we paid our taxes. No extra credit for our two kids either. What a sad day for America. Illegal aliens collect welfare, food stamps, get our jobs, fill our prisons, and suck our tax dollars dry, thanks to the liberals in congress that promised "change". In the meantime, those of us who are hard-working legal citizens of this nation are left out to dry, with no help in sight. Thanks for nothing, Democratic Congress. I'm still a grateful dad and husband, but a bit irritated at the moment. "

Louie wrote on Dec 31, 1969 4:00 PM:

" I am on social security but do pay taxes and have every year since 1960. The amount is close to $600 but not the full amount. What seems to determine the rebate amount is what you paid in taxes for 2007. I over  "

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