The Senate’s $120 billion legislation intended to stimulate the economy primarily through tax rebates is unlikely to affect many students’ refunds this May.
The stimulus package bill, which passed in a 81-16 vote Thursday evening, calls for rebates similar to those previously passed in the House of Representatives — both bills propose $600 rebates to individuals and $1,200 to couples. The House and President Bush are expected to pass the Senate’s proposal into law.
But many students will not see additional dollars in their refund checks and participate in this “economy boost” due to numerous conditions, sophomore biological sciences Ryan Mueller said.
“There’s a big list. … There’s just so many stipulations,” Mueller said.
According to Mueller, although he pays his college tuition in full, he cannot claim himself and receive the tax rebate because he’s still covered under his parents’ life insurance.
“But the big thing a lot of us kids can’t do is pay our own health insurance,” he said. “That’s part of the reason I don’t claim independence.”
Emily Bunch, a junior in political science, said she doubts she will see any additional rebates as a result of the Senate’s stimulus package.
“There’s a lot of restrictions. “It just goes on and on,” Bunch said. “There’s a lot of restraints, but I guess there has to be.”
But Bunch said she would appreciate inclusion in the refund package.
“If I got a check with $1,200, I wouldn’t spend it on the mortgage,” she said. “I would consider it a gift and I don’t use gifts on the mortgage.”
For her actual refund, Bunch said she will use it for practical purposes.
“I will spend it on my personal necessities and wants,” she said. “I would buy some clothes. … [I will] maybe pay off some interest on loans.”
Mueller said he will invest his refund, which he suspects will be comparable to his return in 2007.
“Either way, I’ll get my money. Last year, my refund was about $1,500,” he said. “Personally, I will invest it and use it on my study abroad trip to Australia.”
But Mueller said he is doubtful the legislation will have the desired effect.
“It’ll get the money out in the market. That can work and can’t work in two different ways,” he said. “But in the long run, we’ll pretty much be in the same place.”
Bunch agreed.
“I doubt that $1,200 per couple is going to stimulate the economy,” she said. “The only way it’s going to stimulate the economy is if people use it the way Bush wants them to use it.”
