Stimulus checks set off spending spree

The release of “economic stimulus” checks sent local consumers into a shopping frenzy during the weekend.

As soon as the rebate checks hit mailboxes on Friday, long lines formed at the Bank of Guam branch in Garapan with people cashing their windfall. This continued through Sunday at the bank’s branch inside PriceCostco.

Everywhere, the common refrain was, “Did you get your stimulus check yet?”

Retail stores reported a huge increase in sales, as customers bought things they could not afford with regular pay. Bars, restaurants, and beauty shops saw a rush of customers eager to give themselves a treat.

“It almost feels like Christmas,” observed Ricardo Castro, general manager at Dolphin’s Wholesale, which allowed customers to pay with their checks if they spend at least 10 percent of the amount at the store.

Castro said customers spent an average of $200 for each transaction. Baby products, kitchenware, and electronic gadgets were some of the most popular items.

Ralph Yumul, general manager at YCO Corporation, said that customers brought their checks to YCO Hardware to buy furniture and gardening equipment.

Yumul, whose family also owns the Naked Fish restaurant and the Jollibee franchise on Saipan, said he expects the busy period to continue until the coming weekend, as more people cash their rebates. Some taxpayers got their checks late Friday afternoon, and were not able to cash them.

Sunshine, an employee at a local beauty shop, said customers came in not just for a haircut, but for various kinds of beauty treatment as well.

But while many local residents spent their rebate checks on practical and personal things, there were also those who lost their windfall gambling. A man, who refused to be named, told the Saipan Tribune that he lost $80 of his rebate in a poker room on Friday evening.

The U.S. government sent $16.1 million for the payment of economic stimulus rebates to Commonwealth taxpayers.

On Friday, the Department of Finance released a first batch of approximately 11,000 rebate checks. This represents nearly half of the income tax returns filed for 2007.

The federal rebates range up to $600 for an individual and $1,200 for a couple. Families with children will get $300 per child. The law guarantees workers who earned at least $3,000 in 2007 will receive at least a $300 tax rebate.

The rebates would phase out gradually for single taxpayers whose adjusted gross incomes exceeds $75,000 and for couples with incomes over $150,000.

The rebates were the centerpiece of the U.S. government’s $168 billion economic stimulus package enacted in February and are designed to bolster consumer spending and stir the sluggish economy.