Did the 2008 Tax Rebates Stimulate Short-Term Growth?
"In preparing its economic forecast published in September 2008, the Congressional Budget Office (CBO) estimated that 40 percent of the tax rebates issued in the
spring and summer under the Economic Stimulus Act of 2008 (Public Law 110-185) would be spent within six months––raising the growth of consumption in the second and third quarters of 2008 by 2.3 percent and 0.2 percent, respectively, and reducing it by 1.0 percent in the fourth quarter, when the distribution of the rebates was expected to end.1 However, analysts disagree about the economic impact of tax rebates. This brief examines the issue in light of the evidence currently available..."