Bush Tax Cut 2008

About Bush Tax Cut 2008

The Economic Stimulus Act of 2008 provided tax rebates to approximately 130 million American households. Individuals received up to 600 and couples up to 1,200, with an additional 300 per child. The rebates were designed to stimulate spending during the Great Recession. The total cost was approximately 152 billion. Studies showed that consumers spent about 50 to 90 percent of the rebates within three months, primarily on durable goods, food, and health products. Lower income households were more likely to spend the rebate than higher income households. The 2008 rebates were followed by the larger 2009 American Recovery and Reinvestment Act under President Obama. The effectiveness of tax rebates as fiscal stimulus remains debated by economists.