Edited: 2/5/09
I've always been kind of skeptical about tax rebates. Take the rebate that you got in 2008, for example. I think the rebate was for like $500 or so, which is a good sum of money, yes, but I always felt like it wasn't good enough. After all, what can you get with $500? I guess you could buy a cheap desktop computer (the kind the average consumer would buy), maybe a dishwasher, clothes washer or dryer, etc. But I just always thought that $500 wasn't enough to make people go out there and buy things, and that people would just stick it into their savings account instead.
Well, I was wrong apparently as Bush's 2008 tax rebate did induce a spike in consumer spending and kept it from plummeting (sooner).
http://economix.blogs.nytimes.com/2009/02/04/do-tax-rebates-work/
Edit: Some more evidence: http://economix.blogs.nytimes.com/2009/02/05/more-evidence-on-tax-rebates/
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