Federal tax rebate checks are already appearing in mailboxes nationwide. The $100 billion in federal funds aimed at staving off a recession and boosting the national economy through localized spending will largely end up paying for higher-priced gas.
From CNN Money:
Rising gasoline prices means that up to a third of your stimulus rebate check – designed to boost the U.S. economy through spending at stores, restaurants and other businesses – could be spent buying gasoline, most of which is imported from abroad.
Over one-third of the rebate of the average middle-income single people will go towards fueling their cars based on the Energy Information Administration’s conservative estimates, to the tune of $231 more spent on fuel per person. Two-thirds of the nation’s fuel supply is imported – which means the country’s economy won’t get much of an economic boost.
More expensive fuel prices have made the distribution and consumer costs of products rise as well – for everything from food to furniture. This further diminishes the limited benefits of the rebate, indirectly putting even more cash towards fuel costs.
Check with our friends at EnviroWonk for some better ideas about how to spend your rebate and help the environment at the same time.
Photos via flickr by Jill – Glossy Veneer and by Paul Robert Lloyd.
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