Tax returns and the effect on the local economy
QUINCY, IL —
If you are lucky enough to get money back after doing your taxes, what will that return mean for the local economy?
Dr. Mitch Ellison is an accounting professor at Quincy University.
He says the average tax refund is just under $3,000.
Dr. Ellison says tax returns amount to almost a three-billion-dollar loan we give to the government.
He says how you spend your return depends on your age.
"The younger people tend to save or pay off debt and then the older people who have a higher savings they're the ones who might splurge on a vacation in fact they said around five percent of the people responded that they would buy something big ticket,” said Dr. Ellison.
Dr. Ellison says some people will use their tax refund to pay off debt left over from the holidays.