There’s good news for poor students working their way through college. President Bush signed the Economic Stimulus Act of 2008 Wednesday afternoon in the hopes of preventing or shortening an economic recession by distributing bonus money to U.S. citizens that file income tax returns this year. The $168 million plan was approved by both the U.S. House and Senate earlier this year. Government officials hope the extra spending money will jump-start the economy when citizens spend money on American goods. All U.S. citizens who file income tax returns will receive the extra tax rebate in May. Single citizens who earn from up to $75,000 can receive as much $600, while couples who earn up to $150,000 can receive as much $1,200. Dek Terrell, director of the University’s division of economic development, said college students are more likely to spend their tax rebates because they expect to make more money from their post-graduation careers. Daniel Lusk, math junior, has been working for five years and thinks the stimulus plan is a good start for recession prevention. “I will probably spend it on food and liquor,” Lusk said. Jessica Moore, psychology freshman, said she will put her extra money in a bank account. “I’d probably use it for future living expenses,” Moore said. “Last year I got about $300. I spent it on car insurance,” said Keri Thames, business administration sophomore. “I’d probably save the money for tuition. It wouldn’t be wasted.” Many college students may not receive the extra money because their parents still claim them as dependents. Wilson Nguyen, mass communication sophomore, said he is still a dependent, and his parents file for him. He said he is not sure if the economic stimulus package will help because “people will save more than spend it.” Terrell said he was unsure of how serious he considered the possibility of a recession. “In terms of preventing a recession, there is a debate right now, some people would say the economy has already been in a recession and is on the way out,” Terrell said. “Some say we’re not in a recession and not likely to go into a recession. Some people think that the economy is starting to dip into a longer recession.” Terrell said the source of the recession must be considered. And if it’s not a need for more money in the economy, the tax stimulus plan could increase inflation.
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