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WSU Newsline: Expert looks at both sides of tax rebates
Thursday, March 27, 2008 11:38 AM

The scripts are available for printing and for sound bite identification.

Go to http://www.wichita.edu/newsline to get the current Wichita State University Newsline. If you cannot access the Newsline at the Web address above, contact Joe Kleinsasser at (316) 978-3013 or joe.kleinsasser@wichita.edu. Newsline cuts may be edited to suit your needs. If you have additional questions for Clark after listening to the WSU Newsline, please contact him at (316) 978-7097 or jim.clark@wichita.edu.

Background:

Taxpayers may think it's Christmas in May as they receive tax rebate checks from the IRS. Wichita State University economist Jim Clark looks at the upside and downside to the tax rebate strategy as a means of jump-starting a sluggish economy.

Voice wrap:

Announcer: Taxpayers may think it's Christmas in May as they receive tax rebate checks from the IRS ranging from $600 to more than $1,000. The idea behind the tax rebate is to stimulate the economy by getting people to spend more money. It's unclear, though, whether the tax rebate strategy will succeed, as Wichita State University economist Jim Clark explains.

Clark: "History says that these kinds of tax rebates may work, but it's not completely sure that they're going to have an impact on people. It all depends on what we as consumers do with the money that we're going to get back from the government."

Announcer: According to Clark, some people will probably put the tax rebate checks into a savings account; some will likely pay credit card bills; and others may do what the president and Congress want them to, which is go out and buy something they otherwise wouldn't have. This is Joe Kleinsasser at Wichita State University.

Sound bite #1

Clark explains the idea behind the tax rebate. The sound bite is 17 seconds and the outcue is "start growing again."

Clark: "The idea behind the tax rebate is to help stimulate the economy by getting people to spend more money. We're headed toward at least slower growth if not an actual recession. The idea behind this is to make the economy start growing again."

Sound bite #2

Clark talks about the biggest upside of the tax rebate for consumers. The sound bite is 10 seconds and the outcue is "otherwise would have been."

Clark: "The biggest upside for us as consumers is that we'll have some more money to spend. That always leaves us in much better shape than we otherwise would have been."

Sound bite #3

Clark looks at the downside of the tax rebate. The sound bite is 15 seconds and the outcue is "to pay off."

Clark: "The downside to the tax rebate is that the government has to get the money to pay the rebates with from somewhere. Probably they're just going to increase borrowing so that future generations will have a bigger national debt to pay off."

Sound bite #4

Clark says consumers will use the tax rebate check in a variety of ways. The sound bite is 18 seconds and the outcue is "wouldn't have bought."

Clark: "What consumers are going to do is going to depend on the individual. Some people are just going to take the money and put it in a savings account. Some people probably will use it to pay down their credit cards. And some people may do what the president and Congress want them to, which is go out and buy something they otherwise wouldn't have bought."

Sound bite #5

Clark dispels one of the rumors connected with the tax rebate. The sound bite is 17 seconds and the outcue is "in taxes."

Clark: "There's a rumor floating around the Internet that all that the tax rebate is going to do is reduce the amount of a refund that you're going to get next tax year. That's not true. This is an actual reduction in the amount that you're going to have to pay in taxes."

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Contact: Jim Clark, (316) 978-7097 or jim.clark@wichita.edu.
Created on Mar 27, 2008 11:38 AM; Last modified on Mar 27, 2008 11:39 AM