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.

Headline Links: 'Rebate Checks Diverted To Pay $2 Billion in Child Support, Loans, Other Debts'

Background: 'Stimulus Package Gets Mixed Reception'

Related Topics: Unclaimed checks; IRS flooded with calls; spending checks on gas


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