Julie Schaul, dressed like the Statue of Liberty, holds up an income tax sign to passing motorists in front Liberty Income Tax preparation services in Santa Cruz, Calif., in this file photo.A few years ago, Whitwell resident Jason Freeman brought home an $8,000 federal tax refund and promptly treated his wife to a vacation in Cancun, Mexico.
But this year, he’s only planning to put new tires on his truck and pay some bills with the $1,400 refund he collected.
“It’s not as good as last year’s refund,” he said with a wry grin.
The payroll tax changes that cut into most Americans’ paychecks and an uncertain economy have created a sea of tentative consumers this tax season, according to the National Retail Federation.
The top three ways consumers plan to spend their tax refunds are to put the money in savings, to pay down debt and to pay everyday expenses, according to a National Retail Federation survey.