Shopping for Uncle Sam

Well, Diva thinks there is nothing better than a windfall from a rich uncle, and in this case, Uncle Sam is certainly collecting too much tax money in the first place if he can afford to fritter away that many billions [estimates range from $117 billion to $168 billion] on a nationwide shopping spree. It’s about guns and butter--and this is definitely the butta’ part--as in a sensuous, new, suede handbag from Gucci. Let them do without guns in Iraq--full speed ahead and charge! Diva is ready to launch like a rocket.

Those long-promised checks are due to start hitting consumers’ homes this week. There will be a little extra salsa on the table this Cinco de Mayo. TNS Retail Forward predicts that about $42 billion will be spent in retail stores, from May through the end of the year. Retail Forward says: “Federal tax rebates will give retail sales a significant and much needed boost in the next two quarters. Retail Forward predicts that retail sales growth will improve by as much as 3 percentage points in the third quarter and half that in the second quarter. ”According to Retail Forward’s research, about 41 percent of Americans will use the rebate checks for everyday expenses--or for a splurge. About 32 percent of consumers will pay existing bills with the money--while 4 percent will need the money to help meet their monthly mortgage payments. Is there a flatscreen TV in your future?

So, shoppers of the world unite--Uncle Sam needs you! So do the nation’s retailers--many of which are featuring special offers tied to the rebates. (Check back tomorrow for a blog about retailers' tax rebate offers.)

--Diva