The good news is the IRS is reporting about a 10% rise in average income tax refunds. However, the initial data is showing most Americans are just not spending the windfall. Understandably, they’re either saving the money or more often paying down debt. Those are certainly positive in their own way, helping struggling taxpayers repair their own fiscal balance sheets after years of limited income growth and jobs, but from the broader economic perspective it’s not what was hoped.
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Did the 2008 Tax Rebates Stimulate Spending?
https://pmc.ncbi.nlm.nih.gov/articles/PMC3522430/
Tax Refund Splurge for Many Americans Is Paying Down Debt
https://www.bloomberg.com/news/articles/2026-04-16/higher-2026-tax-refunds-help-us-households-pay-down-credit-card-student-debt
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