WASHINGTON, Nov. 14 (UPI) -- Taxpayers' refund checks will increase nearly 27 percent to an average $2,500 per family early next year, a Washington newspaper reported Friday.
The report said the tax experts and economists believe the windfall will aid consumers, the economy and President Bush's re-election effort, USA Today reported.
As a result of the 2003 tax cut, about 8 million families who did not receive refunds this year will likely get them in 2004, according to tax software publisher Petz Enterprises.
It estimates the refunds will go to 108 million households, compared to 100 million this year and will total $227 billion.
The Treasury Department estimates it will collect $100 billion less in taxes in the first half of 2004 than it would have without the tax cut. That reflects not only the higher refunds but also reduced tax payments by those who don't get refunds.
The refunds will fatten bank accounts and, if spent, boost the economy because consumer spending accounts for 70 percent of U.S. economic activity.
That will help ensure that the economic gains underway do not fizzle out, and it will ultimately benefit the 9 million Americans who are out of work, the report said.
