What Will You Do With Your Tax Refund?
By George Anderson
Despite Federal Reserve chairman Alan Greenspan’s latest remarks expressing less concern about consumer debt, almost half of consumers plan on using their tax refund money to
pay down what they owe, according to the National Retail Federation’s 2004 Tax Returns Consumer Intentions and Actions Survey.
Of those responding, 49.2 percent (the largest number) said they would use refund checks to pay down debt, followed by adding to savings (37.4 percent), pay everyday expenses
(27 percent), make a major purchase (11.6 percent) or go on vacation (12.2 percent).
“Tax time provides a big boost to retailers during a traditionally slow time of the year,” said NRF president and ceo Tracy Mullin. “Though some consumers will choose to spend
their refunds while others plan to save, these tax refunds will ultimately put consumers in a better position to spend, now and in the future.”
Moderator’s Comment: How big a boost will tax refunds give to retail this year? Do you agree with Alan Greenspan’s
recent remarks about being less concerned about the amount of debt consumers are carrying?
Two-thirds of consumers say they are expecting a refund check, according to the NRF. The Internal Revenue Service said the average refund will be $2,182
this year. – George
Anderson – Moderator