Wednesday, July 16, 2008

Talk of more fiscal stimulus

The Times is reporting talk around Washington of another fiscal stimulus package of an indeterminate character. A second bill could include infrastructure spending, a gas tax holiday, corporate tax cuts, or more personal income tax refunds in the form of checks sent to taxpayers.

Although June figures may indicate something different, I wouldn't say that the May personal income report showed much stimulus during the round of rebate checks. Out of a $600 billion increase in disposable personal income that month, only about $41 billion or 6% was apparently spent.