President Bush announced last week that he was seeking to offer American tax payers some reprieve from their financial woes in he form of a tax rebate. The proposal would look to provide a total plan worth $150 billion and taxpayers could see a rebate check before the end of the year. The proposed amount would equal about $800 per individual or $1600 for couples.

The relief plan comes as an effort to kick-start the economy and is intended to get Americans spending again, something they historically like to do quite well but have recently started to worry with mortgage pains, credit tightening and an overall slowdown in the economy.

This type of relief, however, comes with risks. NPR presents a quick summary of some of the concerns, noting that “some economists warn about potential pitfalls. Once the federal government opens up the floodgates of spending, it may be difficult to rein it in – especially in an election year. Another potential sticking point is that Americans may not spend their rebates. Putting the rebates in savings accounts, for example, would have no stimulating effect.”

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