Gas bills ate your rebate

Rising pump prices means a big chunk of your check could end up stimulating an economy far from America’s.

NEW YORK (CNNMoney.com) — OK, so maybe not all your tax rebate, but a big chunk of it.

Rising gasoline prices means that up to a third of your stimulus rebate check – designed to boost the U.S. economy through spending at stores, restaurants and other businesses – could be spent buying gasoline, most of which is imported from abroad.


“The rebate goes into the tank, and then finds its way into economies far from our own,” said Jared Bernstein, a senior economist at the Economic Policy Institute, a liberal think tank.

In a move to avoid a recession, the federal government is sending over $100 billion in checks to most taxpayers across the nation. The checks should arrive as early as May.

CNNMoney.com