POLL ANALYSES
August 17, 2001
Early Returns: How Are Americans Using Their Tax Refunds?
Only a quarter have thus far received a check
by Mark Gillespie
GALLUP NEWS SERVICE
PRINCETON, NJ -- Despite hopes from economists and retailers that advance refund checks on this year’s tax payments would lead to a nationwide spending spree, a new CNN/USA Today/Gallup poll finds that most of those who have already received their checks are using the money to pay off bills or build up their savings accounts. The poll, conducted the weekend of August 10-12, also shows that only one out of four Americans have received a tax cut check thus far.
Of that group, 30% have used their refund to pay off bills, while 28% have invested it. Another 15% have spent their check on everyday items, such as groceries or entertainment, while 11% have spent refund checks to buy consumer goods that they would not have purchased otherwise.
It should be noted that of those who have not yet received their tax cut checks, 19% believe they should have received one already. Almost half -- 47% -- understand that their Social Security numbers put them near the end of the mailing schedule and that they should not have received their checks yet, while 32% are not sure about the status of their checks.
Tax Cut Checks Generate Potential Political Capital for Bush, Republicans
Rightly or wrongly, President Bush has tried to maximize the political benefit from the unprecedented tax cut checks. The new poll shows this effort may well succeed, as 44% of those surveyed give Bush "a lot of credit" for the checks and another 33% say he deserves some credit. The Republicans in Congress also may benefit, but to a lesser extent: just 25% say they deserve "a lot of credit" while 48% say they deserve "some credit."
At the time the law was passed, the Democratic leadership was heavily critical of the tax cut check plan, claiming that lower-than-expected budget surpluses could lead to "raids" on the Social Security and Medicare programs. This may help explain in part why the American public gives the Democrats in Congress significantly less credit than it gives Bush or the Republicans. Just 11% give the Democrats in Congress "a lot of credit" and 44% give them "some credit." The percentage of those who give the Democrats "not much credit" or "none at all" (41%) is nearly double that of those who express that opinion about President Bush (21%) or the Republicans in Congress (23%).
gallup.com |
