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Deadbeats Lose Stimulus Checks
June 27, 2008 02:19 PM
by
findingDulcinea Staff
The government is confiscating $2 billion in economic stimulus rebate checks in order to pay bills for child support, student loans and back taxes.
30-Second Summary
The Treasury Department has taken about 1.8 million rebate checks from people who owe money to the federal or state governments.
The money will be diverted to the family or government agency to which it was owed.
"It's a nice bonus for the children and families in need," says Mike Adams, head of the Tennessee Department of Human Services to USA Today.
"We've had a few complaints but not many," says Dean Balamaci, director of debt collections at the Treasury Department. "We're proud that we're sending money back to families who need it."
So far, the Internal Revenue Service has sent out about 77 million stimulus checks worth a total of $64 billion, or a little more than half of the expected total.
The economic stimulus package was approved by the Senate Finance Committee in February and planned to funnel $200 billion into the economy by giving a tax rebate to individuals making up to $150,000 a year.
The money will be diverted to the family or government agency to which it was owed.
"It's a nice bonus for the children and families in need," says Mike Adams, head of the Tennessee Department of Human Services to USA Today.
"We've had a few complaints but not many," says Dean Balamaci, director of debt collections at the Treasury Department. "We're proud that we're sending money back to families who need it."
So far, the Internal Revenue Service has sent out about 77 million stimulus checks worth a total of $64 billion, or a little more than half of the expected total.
The economic stimulus package was approved by the Senate Finance Committee in February and planned to funnel $200 billion into the economy by giving a tax rebate to individuals making up to $150,000 a year.
Headline Links: 'Rebate Checks Diverted To Pay $2 Billion in Child Support, Loans, Other Debts'
USA Today reports that a sophisticated debt-collection program that was started in 2001 has made it possible to collect more unpaid debts. States and federal agencies send lists of delinquent citizens to the Treasury Department and “Before a rebate is mailed, it is run through a list that contains the names and Social Security numbers of people who owe money."
Source: USA Today
Background: 'Stimulus Package Gets Mixed Reception'
Earlier this year, some economists criticized the booster as an ineffective weapon targeted at a recession that may never arrive.
Source: findingDulcinea
Related Topics: Unclaimed checks; IRS flooded with calls; spending checks on gas
The Internal Revenue Service is reporting that it is holding 5,000,000 rebate checks because it don't know where to send them.
Source: WTVQ
In recent weeks, the IRS has been flooded with calls from tens of millions of Americans who have questions about economic-stimulus payments, leading to delays for many callers trying to reach the agency. Some have not received their payment and want to know why, while others want to know why they didn't receive as much as expected.
Source: Salt Lake Tribune
A study released Wednesday found that most people are spending their economic-stimulus checks on gasoline costs. The Washington Public Interest Research Group says
that an average household spent about $60 weekly on gasoline in February this year but now spends more than $90 per week.
that an average household spent about $60 weekly on gasoline in February this year but now spends more than $90 per week.
Source: Seattle Post-Intelligencer
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